Research Article: 2021 Vol: 24 Issue: 5S
Teng Berlianty, Faculty of Law Pattimura University
Citation: Berlianty, T. (2021). Implementation of corporate social responsibility through community empowerment at copper mining in Wetar Island. Journal of Legal, Ethical and Regulatory Issues, 24(S5), 1-17
Corporate Social Responsibility (CSR) in Indonesia can basically be directed at strengthening the people's economy based on small and medium-sized businesses and improving the quality of community human resources through improving educational facilities and infrastructure. This study aims to analyze and examine: 1) the size/standard of the implementation of the Corporate Social Responsibility Program and 2) whether PT Batu Tua Tembaga Raya (BTR) has implemented the CSR measure/standard. This research is sociolegal research, which combines doctrinal law research methods and empirical law research methods. This type of research data is primary data and secondary data obtained through literature studies and interviews. The results showed that: 1) measures of CSR implementation according to the principle of proportionality are: a) the size of the Company's capabilities based on the number and type of programs; b) size of contribution based on program objectives. 2) In practice, PT Batu Tua Tembaga Raya (BTR) has implemented CSR program standards well through community empowerment.
Empowerment, Community, Mining Companies.
Development can be seen as one of the ways that is sought to solve various problems that arise in society (Akbar et al., 2019). Development is a process of change that takes place consciously, planned and sustainable (Haryadi & Nuriyatman, 2018). The development of an area is solely open to the responsibility of the government, but also the responsibility of all elements of society and the private sector including all companies in the area. Basically there are three (3) groups that have an important role in sustainable development activities in order to realize good governance, namely the government, the community, and the company as a business actor (corporate). The company's responsibility for the development and development of the community is called Corporate Social Responsibility. The company's responsibility for the development and development of the community is called Corporate Social Responsibility. Corporate social responsibility (CSR) is an obligation that can change the views and behaviour of businesses, so that CSR is interpreted not just as a moral demand, but as a corporate obligation that must be implemented (Suhadi et al., 2014). The standard definition of CSR is about sacrificing profits for social benefit (Bénabou & Tirole, 2010).
The absence of consensus on what should be corporate social responsibility in regulation in various countries of the world leads to a consistent inhibition of CSR implementation (Tamvada, 2021). Over the past few decades, CSR has been considered a moral and normative responsibility that companies can pursue voluntarily. However, then there are calls to bring legal support to CSR (Kara, 2018). This includes efforts to provide strengthening of functions, participation in the application of law, both private law and international law as a form of CSR regulation that should be (Beckers, 2019). This is so that the implementation of CSR is no longer limited to corporate volunteerism but is a moral responsibility as well as a legal responsibility of the company (Amodu, 2017).
Corporate Social Responsibility (CSR) began to be known in the 1950s, its main focus is on business responsibility to the community in terms of how to do good deeds for the community. Then in the 1960s, various important ideas and ideas emerged in marking the social changes that occurred during this decade. In the 1990s the idea of Corporate Social Responsibility (CSR) became almost universally approved, after all CSR was combined with the strategic literature, and finally in the 2000s CSR became an important strategic issue in the world (Moura?Leite & Padgett, 2011). Furthermore, the CSR concept was then developed and applied by countries in the world and then developed to Indonesia.
Corporate Social Responsibility (CSR) is the obligation of the company as stipulated in Law No. 40 Year 2007 on Law of Limited Liability Companies and in Government Regulation No. 47 of 2012 concerning Social and Environmental Responsibility of Limited Liability Companies. Based on the provisions of the legislation, social and environmental responsibility is the company's commitment to participate in sustainable economic development, as well as improve the quality of life and environment that benefit the company internally and externally, the local community and the community in general.
Chairil said that the CSR program is intended so that businesses, both industrial and corporate sectors, can play a role in healthy economic growth, taking into account environmental factors (Siregar, 2007). Anna Beckers and Mark Kawakami also stated that this CSR is understood as a code of conduct developed and published by transnational companies to demonstrate their globally applicable commitment to respecting human rights, improving fundamental employment standards, protecting the natural environment, and preventing corruption (Beckers & Kawakami, 2017). CSR itself is very related to sustainable development where the company before conducting an activity, must be based on decisions that not only think about or disorientation on the economic aspect, but also have to think about the social and environmental impacts that can be caused by the decision.
In this idea, companies are no longer faced with responsibilities based on a single bottom line namely the economic aspect, which is only reflected in finance. However, it will concern social and environmental aspects as well. In this context, the Company's responsibility for the fulfilment of community rights in post-mining activities on the mining side is handled not only to fulfil responsibilities in the context of prosperity, but also social responsibility towards the environment (Berlianty, 2015).
PT Batu Tua Tembaga Raya (BTR) is a private company that conducts copper mining activities in Wetar Island. The company obtained a Mining Business License - Special Production Operation for the management and refining of Copper Metal Minerals in Uhak Village and Lurang Village of Wetar Island, Southwest Maluku Regency of Maluku Province. In the copper mining activities in Wetar Island, PT Batu Tua Tembaga Raya (BTR) participated in efforts to develop the community around Wetar Island. So the problem in this study is how CSR implementation through community empowerment in copper mining in Wetar Island, Southwest Maluku Regency.
In accordance with the problems and objectives of this research, the type of research used is sociologic research (Irianto, 2009), which is a combination research method between doctrinal Law research method and empirical Law research method. This research was conducted in Wetar Island, Southwest Maluku Regency as a copper mining site. This type of research data is primary data and secondary data obtained through literature studies and interviews.
An Overview of Wetar Island
Wetar Island is one of the outer islands of Indonesia located in the Banda Sea and borders the country of East Timor. The island is bordered by the Banda Sea to the north, east by Lirang Island and Timor Sea. Administratively the island is included in the region of Wetar Subdistrict, Southwest Maluku Regency, Maluku Province. Below is a map of Wetar Island with the Company Location of PT Batu Tua Tembaga Raya (BTR) located in Lurang Village Figure 1?
To get to Wetar Island, it can be accessed from three directions, namely the west is accessed from Kupang City by sea transportation or from Kupang City to Kisar by air, followed by sea route from Kisar to Wetar Island. Sea boat transportation from Tiakur (Capital of Southwest Maluku Regency) takes about 24 hours because it must follow the route of pioneer ships that stop at several ports on other islands before finally arriving at Wetar Island. From the north, it can be accessed from Ambon City to Kisar by air transportation and to Wetar Island by sea transportation. For transportation from Ambon City to Wetar Island using a pioneer ship must wait for a trip in 2 (two) weeks for one trip. Air transportation available is using Trigana Air flights from Ambon City to Kisar Island. Air transportation from Ambon City takes place 2 (two) times a week to the capital of Southwest Maluku Regency while pioneer flights from Kupang City take place 1 (one) time a week.
Social life and the condition of the people in Wetar Island which is far from the capital of Southwest Maluku regency and the capital of Maluku Province, ambon city makes the mobility of wetar island people to these areas become constrained and it cause Wetar island falls into the category of remote areas. Because the distance from Wetar Island to Kupang East Nusa Tenggara is closer, some people of Pulau Wetar choose to do various activities to Kupang City for example to get health services, education and so on.
The Implementation of CSR by PT Batu Tua Tembaga Raya (BTR)
The initial development of CSR in Indonesia has actually lasted more than two decades; some companies have long conducted community development programs, especially extractive companies engaged in the mining sector by conducting a variety of activities aimed at developing the community, although not calling it a CSR program. Mining companies have been pioneers in developing community development programs with the target of the community around the operation of the company, although at that time there was no policy from the government that governs and became the basis for the implementation of community development programs.
Programs that are often implemented in general in the form of physical development such as the construction of road infrastructure, facilities and infrastructure in the field of education, health to the provision of assistance - social assistance directly to the community. There is no denying that the company's motivation in organizing community development programs is quite varied, there are companies that carry it out with a motive to minimize conflict with the community, respond to the demands and demands of the community. But there is also a realization that corporate entities are inseparable from the existence of people residing around the company.
The variety of corporate motives in organizing the community development program is inseparable from the discourse on the role and responsibility of the company to the surrounding community. At that time, in Indonesia has not developed a discourse about CSR as it existed in the part-time of the 1990s, both in the environment of academics and observers who have attention to community development programs or CSR.
In its development community development is felt not only to be the needs of the community, but many companies realize the importance of implementing community development programs. This is based on the consideration that the company is not a separate entity with the community, their existence is interdependent, so the company is not only dedicated to shareholders. But also intended for the public at large the company also has responsibilities and wider interests, namely the community and its environment. The existence of companies in an area will contribute directly or indirectly to both the region and the community. For the region, the existence of the company will trigger the development of supporting economic activities, such as the industrial and trade sectors. While for the community, the existence of the company will be able to provide opportunities and job opportunities so as to accommodate the existing workforce in the region.
Nevertheless, every company in pursuit of its business objectives, not infrequently cause various consequences both physical and social as a result of the company's operational processes that can have a negative impact in society. Negative impacts related to environmental conditions include environmental degradation such as pollution, decreased biodiversity and decreased environmental support capacity for human life. This problem is quite crucial because it concerns the survival of people and their ecosystems while negative social impacts can be in the form of changes in socio-cultural values the fading capacity of social capital can threaten the social order of society.
Although CSR implementation in Indonesia is currently experiencing quite rapid development, but in its implementation is still coloured by various problems, both external and internal problems of the company, from the external side, the situation and the condition of good governance at the central level to the regional level is still a serious obstacle for the company to implement CSR programs. For example, companies must provide funds to the local government in which they operate. Similarly, technically companies are faced with choices between contributing directly to the community or managing the program through NGO Partners (Koestoer, 2007). According to Kemp Melody, there are historical and cultural factors that are the legacy of the present that must be faced by the government and people of Indonesia and that hinder the significant change in the performance of corporate social responsibility (Kemp, 2001).
Corporate Social Responsibility or commonly known as CSR is an obligation in the form of a program for companies with the intention to have usefulness for the surrounding community. Some companies incentivize employee involvement in community service, improving the company's relationship with the local community and attracting the surrounding community to become employees of the company (Besley & Ghatak, 2005). However, often in its implementation CSR is not implemented in accordance with the actual rules. CSR is often used only as a complementary tool from the government to avoid sanctions. In anticipation of this, the government made regulations governing CSR in Article 74 of Law No. 40 of 2007 concerning Limited Liability Companies. But there seem to be many weaknesses that the regulation still has proven by CSR implementation that has not been running to the maximum. Therefore, it is necessary to reconstruct CSR regulations in Indonesia to improve the implementation of CSR programs in Indonesia.
Article 1 number 3 of the UUPT (Law of Limited Liability Companies) states that Social and Environmental Responsibility is the company's commitment to participate in sustainable economic development in order to improve the quality of life and the environment that is beneficial, both for the company itself, the local community, and the community in general.
The nature of the law that is always open and dynamic following the dynamics of changing community needs is expected to be able to answer the need for law (De-Rooy et al., 2021) related to laws and regulations related to CSR. Regulations on CSR in addition to being regulated in Article 74 UUPT (Law of Limited Liability Companies) are also regulated in Article 15 of Law No. 25 Year 2007 on Investment (investment law). In investment law legal risk for the Company that does not implement CSR is stipulated in Article 34 of the UUPM, which is subject to administrative sanctions in the form of:
Meanwhile, in the UUPT (Law of Limited Liability Company) the provisions of sanctions for the Company that do not carry out CSR obligations are not specifically regulated, but are handed over and subject to sanctions in accordance with the relevant laws and regulations, i.e. subject to all forms of sanctions stipulated in the legislation. Further provisions on Social and Environmental Responsibility are stipulated by Government Regulation No. 47 of 2012 concerning Social and Environmental Responsibility of Limited Liability Companies.
PT Batu Tua Tembaga Raya is an Indonesian-based Finders Resources Limited (ASX Code: FND) operator with a 95 percent stake in Wetar Copper Project. Wetar Copper Project has several prominent characteristics, namely:
PT Batu Tua Tembaga Raya is a subsidiary of the main company, PT Merdeka Copper Gold Tbk, as a licensee for special production mining operations for the processing and refining of copper mines on Wetar Island. PT Batu Tua Tembaga Raya (BTR) is one of the mining companies that is very serious in implementing Corporate Social Responsibility (CSR) programs, especially Wetar Island, Southwest Maluku. Since 2007, along with exploration, PT Batu Tua Tembaga Raya (BTR) has also started to run Community Empowerment programs, especially in the areas of health, education, infrastructure and livelihood.
A humane approach with a sincere heart certainly gives good results. The mining community welcomes and believes that what PT Batu Tua Tembaga Raya (BTR) is doing will also improve their well-being. In the span of 2013 to early 2020, there have been many activities carried out jointly by the community around the mining site and PT Batu Tua Tembaga Raya (BTR) through the Department of Community Development (Comdev).
Thus, the presence of PT Batu Tua Tembaga Raya (BTR) in the community can make a significant contribution to improving the welfare of the surrounding community while maintaining environmental sustainability.
Community Empowerment of Wetar Island through CSR Program of PT Batu Tua Tembaga Raya (BTR)
Empowerment as a process of developing, establishing, empowering, strengthening the bargaining position of the lower layer of society against suppressive forces in all areas and sectors of life (Eko, 2002). Community empowerment as an alternative strategy in development that aims to advance and provide change in the community through the development of community skills (Noor, 2011).
Community empowerment is one of the empowerment agendas, which are generally in the form of empowerment activity programs directed at small and medium-sized business groups (Labetubun, 2011). The concept of empowerment (village community) can be understood also by two points of view. First, empowerment is interpreted in the context of four standing compositions of society. The position of the community is not the object of beneficiaries that depend on the giving from outside parties such as the government, but rather in a position as a subject (agent or participant who acts) who acts independently. Doing it independently does not mean being independent of the responsibilities of the state. The provision of public services (health, education, housing, transportation and so on) to the community is certainly the duty (obligation) of the state on a given basis. An independent society as a participant means the openness of space and capacity to develop potential-creation, control its own environment and resources, and solve problems independently. The community participates in the development and government process (Noor, 2011).
The practice of contributing the business sector in realizing Social Welfare has evolved, there are companies that are still limited to the Economic responsibility phase, but there are also companies that have reached the philanthropic responsibility phase. But there are also companies that try to avoid legal regulations related to the implementation of CSR to reap the highest profits so that the welfare of the community is neglected (Jumde, 2021). Corporate actions that contribute to social welfare, beyond what is necessary to maximize profits, are classified as real Corporate Social Responsibility (CSR) (McWilliams, 2015). Business entities that understand CSR within the framework of economic responsibility tend to place CSR as part of maximizing CSR profits for nothing more than "generous advertising" to gain public sympathy. While companies that understand CSR within the framework of philanthropic responsibility put CSR as part of the way to be a good citizen (good citizenship). Companies located in countries with stronger legal systems have CSR implementations with external governance that can function properly (Lu & Wang, 2021). This means that because of the clear rules attached to CSR, in its application every company can follow the CSR provisions that are clearly regulated in the legal system.
The problem in the life of rural communities in general is the limitation of the low access to potential sources in an area (Artina et al., 2021). The essence of community empowerment is not just sharing programs with the community. The existence of a program does not necessarily help solve social problems in the community, therefore the program is not identical with empowerment, if the implementation is in the program (program oriented), the community is the object of receiving various kinds of programs where each other is not well coordinated. CSR implementation must be placed in the context of community empowerment as an on-going process, rather than merely program-oriented. Currently, many companies are starting to invest with the aim of exploring natural resources available in the community but do not pay attention to community empowerment as required in the provisions of the legislation (Kitzmueller & Shimshack, 2012). This is because most companies assume that CSR programs are part of company volunteerism (Agudelo et al., 2019), but it should be reminded that CSR in its legal regulations implies that CSR is an obligation that must be implemented by the company. Both the community and the company can work together to support the company so that it can create more cooperative, productive, and lasting relationships (Bosse & Coughlan, 2016). The goal is to empower the lives of the people around the company's location.
Community empowerment as a process is an activity that is trained continuously throughout human life that is gained from individual experience and not a process that occurs at one time only (Adi, 2008). Community empowerment as a process is carried out in 5 states that are interconnected with each other. The first stage is brainstorming to recall both empowering experiences and powerless experiences. The second phase is human resource development (HR) starting with efforts to increase awareness and confidence to empower the community. These two phases are important because the community itself is the most aware of the problems faced. The third stage is to identify the source of the problem. The fourth stage analyses the potential forces that can be utilized. The fifth stage is to develop an action plan and implement it.
Community empowerment as an on-going process is an ideal concept; each stage requires serious attention because one stage is the foundation of the next stage. To empower the community as a process requires not a little resources, both from the financial and human resources. In Article 1 paragraph (8) regulation of the Minister of Home Affairs of the Republic of Indonesia Number 7 of 2007 concerning Community Empowerment Cadres, it is stated that community empowerment is a strategy used in community development as an effort to realize the ability and independence in the life of society, nation and state.
The core understanding of community empowerment is a strategy to realize the ability and independence of the community. In addition, community empowerment is a process to encourage the ability or capacity of the community to then develop existing resources, be it in the form of human resources or natural resources located somewhere in order to improve the welfare of the surrounding community. However, the actions taken are not only limited to developing the ability of the community to meet the needs of his life. In addition, in order to foster the spirit of self-reliance of a community so as to restore the quality of life and have a high spirit in participating in community empowerment activities. In such circumstances, the community becomes the main focus for the empowerment process itself. It means that the purpose of the implementation of empowerment activities is to improve the ability and quality of life of the community in order to be able to live a better life. This is also strengthened by the opinion of Sumodingrat (Sumodiningrat, 2008), who argues that society is a living being that has social and economic relationships, so that community empowerment is a way to foster the motivation of living independently in the community as one unity.
The purpose of community empowerment is to improve the ability and independence of the community, especially on social issues such as backwardness, social inequality, poverty, unhealthy social and environmental conditions and various social problems that exist in society. The problem of poverty for example often makes people unable to meet the needs of their lives, not even a few of the people who because of the poverty factor resulted in the community becoming isolated due to not being able to meet its basic needs. Those basic needs, including food, housing, clothing, education, health and a wide range of basic needs of the community. While the problem of backwardness, such as low productivity, low quality of human resources, limited access to land even though dependence on the agricultural sector is still very strong. In other words, the issue of backwardness concerns structural (policy) and cultural (Sunyoto, 2004).
There are several ways that can be done as a consideration to be implemented in the framework of the community empowerment process, namely:
Protective measures need to be understood as measures to prevent unhealthy competition, as well as strong exploitation of people who are unable to stand on their own or communities that are still faced with various social problems such as poverty and backwardness. Community empowerment does not also make the community become more dependent on various programs given, but through the granting program, the community is required to be independent by improving their abilities and have the motivation to fight forward from poverty and backwardness to a society that is able to stand on its own and be able to meet various needs of its life. Thus, in the end the community is expected to be a society that is no longer isolated and underdeveloped but through the empowerment of this community can establish a community, enable, and build the ability to advance itself towards a better life in a sustainable manner.
Wetar Island is one of several large islands in Southwest Maluku. Wetar Island is one of the islands in Indonesia that is rich in mining material potential and has a copper mining industry. Several decades ago from 1981-1988 in Wetar Island there was a PT gold mine. PLM (Prima Lirang Mining). But gold mining in Wetar Island, does not contribute to community empowerment, so the people of Wetar Island remain in the same condition as before, namely living without electricity facilities and so on.
In middle of 2007 a copper mining company discovered copper content and started to build mines. As a pilot project, the mine built is not large. The company is none other than PT Batutua Tembaga Raya (BTR). Unlike the gold mining company that previously operated in Wetar Island, PT Batutua Tembaga Raya (BTR) has since operated in Wetar Island in 2007 conducting various community empowerment and development programs to prosper the people of Wetar Island.
Until now, the focus of CSR Program of PT Batu Tua Tembaga Raya (BTR) is still limited to two mine circumference sites, namely Uhak, and Lurang. In the future, there will be program development to other villages in Wetar Island. The hope is that the people of Pulau Wetar can also live prosperously and benefit from the presence of PT Batu Tua Tembaga Raya (BTR) through its CSR program.
Based on the results of the research, PT Batu Tua Tembaga Raya (BTR) has conducted community empowerment in Uhak and Lurang villages. This is proven by various activities communiy Empowerment to empower the community around the location of the company through its CSR Program in accordance with the provisions of the Law of PT. The community empowerment programs are:
Agriculture and Animal Husbandry Sector
Community empowerment in the field of economy and agriculture is given to two villages Uhak, Lurang. The company provides seeds of vegetables and fruits (watermelon and melon), for the community to plant/garden and the results are sold to the company (Interview with Mr. Melkisedek Ley be farmer ). The company provides laying hens and cut hens to the livestock community / business and the result of the company that buys. Two villages as a buffer are given a harvest schedule and sell the results 2 times a week (Interview with Mr. Albert Tetiray, breeder). In addition to the chicks provided by the company, there is also a community independent business for pig and cattle farms which is then purchased by the company as a form of corporate concern for the business activities of the local community (Interview with Philipus Skailau, community leader/customary chairman). Before the operation of PT Batu Tua Tembaga Raya (BTR), farmers and farmers in Uhak Village and Lurang Village could only enjoy the results to meet the needs of their families. But with the presence of PT Batu Tua Tembaga Raya (BTR), provides opportunities, opportunities and great expectations for farmers and farmers to not only enjoy the results of their business for the needs of their families only, but can earn a good income, because PT Batu Tua Tembaga Raya (BTR) buys their crops and also their livestock.
Health Sector
The health sector in the form of sick people can be treated at the company's clinic for free. During the Covid-19 pandemic, if there is a symptomatic community then it will be immediately in rapid test, and if reactive then it will be directly in swab test, if positive then immediately referred to Siloam Hospital in Kupang East Nusa Tenggara (Interview with Midwife Penina Rumtutmey, medical officer Public Health Center). Health care facilities in Wetar Island are very limited both for puskesmas (Public health centre) infrastructure and medical devices in puskesmas. Therefore, it is very difficult if there are people who are seriously ill who need to be treated with good medical equipment and doctors. The presence of PT Batu Tua Tembaga Raya (BTR) is also very helpful to the people in Wetar Island, especially in Uhak Village and Lurang Village in terms of getting accessibility to obtain health services. Before the entry of PT Batu Tua Tembaga Raya (BTR), the people of Uhak Village and Lurang Village were very limited in terms of transportation and transportation to and from Wetar Island, especially if there are people who are seriously ill and need to be referred to get better health services. Vulnerable control from Wetar Island to the capital of the Regency and the capital of Maluku Province, Ambon city is very limited. The people of Pulau Wetar have to wait weeks to be able to use transportation such as ships. The real evidence done by PT Batu Tua Tembaga Raya (BTR) is to provide sea transportation facilities in the form of company ships for free use by the people of Uhak Village and Lurang Village around Wetar Island if they want further treatment either to Tiakur or to Kupang City. Kupang city was chosen by the people around Wetar Island, because the distance from Wetar Island to Kupang is closer when compared to the distance to Tiakur Capital of Southwest Maluku Regency, especially to Ambon City. The community around Wetar Island is greatly helped by the provision of transportation by PT Batu Tua Tembaga Raya (BTR) for people in need.
The following is a Table 1 of health assistance data provided by PT Batu Tua Tembaga Raya (BTR) as part of the implementation of CSR programs:
Table 1 Health Aid |
|||
Integrated Healthcare Center | Public Health Center | Corporate Health Clinic | Siloam Referral Hospital Kupang |
---|---|---|---|
- | - | The public can seek treatment at the Company Health Clinic | People who are positive for Covid 19 are helped with treatment at the Siloam Hospital Kupang |
Source: Processed from interviews
Education Sector
Facilities and infrastructure and human resources in the field of education in Wetar Island, especially in Uhak Village and Lurang Village are very minimal. For paud (early childhood education programs) and kindergarten facilities alone are not owned by Uhak and Lurang villages, so children who want to go to school, usually directly get an education at the elementary school level (SD), whereas early childhood education for children before entering elementary school (SD) is also very important for children's development. In addition, many children in Uhak Village and Lurang Village eventually dropped out of school because they could not continue their education to a higher level such as college because parents could not afford to pay tuition fees anymore. However, with the presence of PT Batu Tua Tembaga Raya (BTR), it gives great hope in the field of education for children in Uhak Village and Lurang Village. PT Batu Tua Tembaga Raya (BTR) provides computer assistance to educators (Interviwe with Mr. Romelus Matena, head of elementary school). In addition, it also renovated SD Negeri Lurang building with the addition of kindergarten and teacher’s mess Figure 2.
Company employees also provide English lessons and subjects (Mathematics and Physics) for junior high school students. The company also established foundations for Paud and TK Figure 3.
Figure 3: The Construction of the Tunas Farmer Lurang Kindergarten in Collaboration with the Ina Rifa Foundation
In addition, the Company strives to provide tuition fees for the people of the two villages who want to continue their studies at the higher education level (Interview with Mr. Wiliam Kahdjoru, chairman of the Ina Rifa Foundation). What PT Batu Tua Tembaga Raya (BTR) does is very helpful for the children of Uhak Village and Lurang Village who are unable to continue their education in order to pursue the ideals and expectations of their parents. With the number of children who are given educational scholarships by PT Batu Tua Tembaga Raya (BTR) can minimize the dropout rate even the number of illiteracy in Wetar Island, especially in Uhak Village and Lurang Village.
The following is a Table 2 of education assistance data provided by PT Batu Tua Tembaga Raya (BTR) as part of the implementation of CSR programs:
Table 2 Bantuan Bidang Pendidikan |
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Early Childhood Education and Kindergarten | SD Elementary School |
SMP Junior High School |
SMA Senior High School |
KULIAH College |
---|---|---|---|---|
PAUD & Kindergarten was built by Ina Rifa Foundation | -- | Provide scholarships for local students of Rp.300,000./ semester/ student | Provide scholarships for local students of Rp.550,000./ semester/ student/ | Grant scholarships in two categories. A full scholarship given to only two people every year for Rp.2,400,000./month/person. Scholarships for all students are Rp.1,250,000/semester/person. |
-- | -- | Company employees provide English, math and physics lessons | -- | -- |
Source: Processed from interviews
With the help in the field of education, school-age children do not drop out of school, especially for those who want to continue their education in college that has been constrained by low parental income (below the poverty line for housing, clothing, education and health), can get an education in college that will be the generation that will build in the area after the children have finished studying at the college level, armed with the knowledge they have obtained, they will return to Wetar Island to develop, empower the community by building Wetar Island so that it is no longer a poor and underdeveloped area.
Community Livelihoods
In addition to the above areas, in the field of community livelihood, the Company also makes training for the community to make honey drops in order to obtain good honey yields, and its marketing is assisted by the company. In fact, until now, honey products that are processed naturally have obtained the trademark of the honey product with the name "Wetar Forest Honey" (Interview with Mr. Wiliam Kahdjoru, chairman of the Ina Rifa Foundation ). Through training for the community, of course, it can add insight, knowledge and even skills of the community to then be used to develop the ability and quality of self so that it no longer relies on garden products alone, but can explore and develop the natural resources owned, namely name "Wetar Forest Honey”.
Through the development and cultivation of "Wetar Forest Honey”, of course provides great benefits for improving the welfare of the surrounding community so that it does not always depend on agricultural products and plantations owned. In addition, Wetar Island can be better known by the outside community through the cultivation of Honey Wetar Island. Since 2019, PT Batu Tua Tembaga Raya (BTR) has also provided three hundred million rupiah per year for the development activities of Uhak Village and Lurang Village (Interview with Mr. Nicodemus Manunu, head of Lurang village).
Religious Sector
The people on Wetar Island are predominantly Christian. Religious facilities in the form of church buildings are built with church funds and funds from the community. PT Batu Tua Tembaga Raya (BTR) Company is present and polluted in Wetar not only to explore copper resources on the island, but also to provide great benefits and impacts in the empowerment and development of communities including in the field of religion. In the field of religion, PT Batu Tua Tembaga Raya (BTR) provides assistance to the church. For Lurang village, assistance provided to the church in the form of Cash for the construction and development of church service activities and the construction of church fences. As for the village of Uhak the company built a church building (Interview with Mrs. Paulina Letelay, chairman of the Congregational Assembly).
Rural Facilities and Infrastructure
Before the entry of PT Batu Tua Tembaga Raya (BTR), villages on Wetar Island including Uhak Village and Lurang Village could be categorized as disadvantaged villages. This is because the villages do not have lighting facilities that become one of the important needs of the community. Infrastructure facilities in the form of electricity are not owned by Uhak Village and Lurang Village and even other villages on Wetar Island. But with the operation of PT Batu Tua Tembaga Raya (BTR), electricity facilities began to be built with the cooperation of the Regency government and pln. according to interviews with the community in Uhak Village, PT Batu Tua Tembaga Raya (BTR) also provides 35 KPA Genset assistance to the village for electricity needs, which for 24 hours the community obtains electricity facilities (Interview with Mrs. Oda Djara, member of the public) Figure 4.
This provides great benefits for the community because it can enjoy the lights as a light at night. Community activities at night can also be done well. From the description of several community empowerment programs as part of the CSR implementation of PT Batu Tua Tembaga Raya (BTR) as mandated in Article 74 of the Law of Limited Liability Companies, it is clear that PT Batu Tua Tembaga Raya (BTR) has been working to improve the standard of living of the people around Wetar Island specifically Uhak Village and Lurang Village by providing various assistance, providing various facilities so that people's lives no longer depend on plantation products alone nmun can also m develop and manage their natural resources and the ability of the community to be able to increase their income.
The people of Uhak Village and Lurang Village on Wetar Island, who before the entry of PT Batu Tua Tembaga Raya (BTR) can only carry out life by depending on plantation products and living in limited village facilities and infrastructure, can now feel better benefits through various facilities, infrastructure and assistance provided by PT Batu Tua Tembaga Raya (BTR).
This shows that PT Batu Tua Tembaga Raya (BTR) as a mining company in Pulau Wetar, in exploring natural resources in the form of mining products owned by Pulau Wetar, has implemented the mandate of Article 74 of the Limited Liability Company Law which obliges every company including mining companies to be able to empower the community around the company's location through community empowerment programs. CSR program is a corporate obligation that is budgeted and taken into account as the cost of the company whose implementation is carried out by taking into account propriety and fairness. If the company does not carry out this obligation, sanctions may apply. Indeed, article 74 of the Law on Limited Liability Companies does not clearly regulate the obligation of the company to carry out its CSR programs. Article 74 Paragraph (4) states that further regulation on CSR is governed by government regulations. But until now, there has been no government regulation that clearly regulates the CSR program. This is one CSR weakness mandated in Article 74 of the Limited Liability Company Law. As a result of the lack of clear legal arrangements governing the CSR Program as a liability of this company, which causes the company to freely implement CSR programs in accordance with company policy only, even in no way implementing CSR programs but not getting sanctions.
Related to the community empowerment program that has been implemented by PT Batu Tua Tembaga Raya (BTR), it can be emulated or used by other companies to not only pursue the maximum profit but ignore the condition of the community around the company's location, but also need to prosper the community around the company's location by setting aside some of the profits owned to build, manage and empower the surrounding community , especially in villages or islands that are far from a prosperous life.
The implementation of CSR Program by PT Batu Tua Tembaga Raya (BTR) as a Copper Mining Company in Wetar Island has been implemented properly as a form of fulfilment of the company's obligations in accordance with the laws and regulations on Social and Environmental Responsibility of Limited Liability Companies. Various programs and activities in the field of agriculture and animal husbandry, education, health, livelihood, religious fields are able to have a positive impact for the community in Wetar Island, especially two (2) villages around the mine site. CSR program of PT Batu Tua Tembaga Raya (BTR) has contributed to the empowerment and improvement of the community economy. In addition to helping to improve the standard of living of the community, it also serves as a facility to maintain the social stability of the people of Wetar Island, but especially CSR programs in the field of education in the form of further study scholarships at universities outside the region, the community needs to respond well, especially the youth financed by PT Batu Tua CSR program in the form of scholarships, After finishing their studies, they will rebuilt their area which was categorized as remote and living below the poverty line.