Mining and Community Development in Indonesia A Case

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I Anif Chawa declare that the PhD thesis entitled Mi ning and Community Development in Indonesia A Case Study is no more than 102 5 43 words in length including quotes and e xclusive of tables figures appendices bibliography references and footnotes This thesis contains no material that


Mining industries are widely perceived as damaging the environment and local. communities The Indonesian government requires mining industries to. undertake Corporate Social Responsibility including community development. activities This study investigated the implementation of community. development by a mining company on Sumbawa Island West Nusa Tenggara. Province Indonesia It focussed on the participation of the local community in. decision making processes for the implementation of the mining company s. community development programs The study also examined how the mining. company has involved other parties including NGOs and local government in. its community development program implementation, This research falls within the critical social research tradition in that it examines. issues of power and seeks to contribute to bringing about change for. disadvantaged communities A case study approach was utilised with data. collection methods including semi structured interviews review of documents. and field observations Semi structured interviews were conducted with 42. informants selected on the basis of their knowledge involvement and. responsibility in the community development programs The sample included. mining company employees local community members government officials. and workers in Non Government Organizations, This research found that the mining company has implemented community. development programs including infrastructure capacity building health. education agriculture and local business development charity and revolving. fund programs The local community has to some extent been involved in. decision making However the research revealed some local community. resistance and some unintended impacts of the implementation of the. community development programs One of these unintended impacts has been. the creation of financial dependency on the mining company rather than the. empowerment that is an intended impact of community development The thesis. includes recommendations including more of a role for local government and. more participatory development programs for improving the implementation of. community development in Indonesia and other developing countries. Student Declaration, I Anif Chawa declare that the PhD thesis entitled Mining and Community. Development in Indonesia A Case Study is no more than 102 543 words in. length including quotes and exclusive of tables figures appendices. bibliography references and footnotes This thesis contains no material that. has been submitted previously in whole or in part for the award of any other. academic degree or diploma Except where otherwise indicated this thesis is. my own work This research was approved by the Victoria University Human. Research Ethics Committee at 10 12 2009 Approval HRETH 09 2 10. Signature Date 4 April 2014,Acknowledgements, This thesis would not be completed without support from the people to. whom I deliver these acknowledgements, I express my greatest gratitude to Prof Marty Grace for the amazing.
supervisory process and your incredible patience in dealing with my. unfamiliarity in English Your critique and feedback meant that I have to. force my self to progress with English and my research content This has. resulted in my great improvement and achievement in both aspects To. Prof Michael Hamel Green thank you for your critical comments Thank. you both I am also indebted to Siew Fang Law for her readiness to share. her valuable knowledge in relation to the concept and theories of. community development, I also appreciate the support and assistance from the library staff English. Learning Support ELS particularly from Angela Rojter and administrative. staff at Victoria University particularly the staff from Post Graduate. Research Program College of Arts, I wish to acknowledge all my colleagues in 212 post graduate room and. level two corridor of building L Lutfiye Ali Dr Charles H B Mphande. Dr Richard Chauvel Pak Sultan Yu Ive Mbak Riaty Bunda Siti. Nuryanah and many others who may not be personally named at all. Thank you all for giving me an incredible encouragement discussion and. various distractions which help me to ease the stressful time during the. writing process, I would also like to thank my interviewees from the mining company. employees NGOs the local government staff members and the local. communities who helped me during the data collection process All of you. have taught a valuable understanding and experience for me as a. researcher, To my family They always keep my spirit on My husband Alief Haidir. Romdhoni What can I say This thesis is dedicated especially for you I. could not go through this study without your support and love To my. beautiful and talkative daughter Alifia Khairunisa thank you for teaching. me how to speak English fluently You re the best English teacher I have. ever had To our family surprising gift Kenzie Nur Affandi thank you for. teaching me how to be a tough student mommy To my wonderful families. my parents and my brother and sister who live so far way thank you for. your doa doa for me, My great appreciation goes to the Indonesian government and Direktorat.
Jenderal Pendidikan Tinggi DIKTI which provided a scholarship for me to. study and learn about a different academic environment overseas. Finally the most grateful I say to Allah I could never have finished this. thesis without his help blessing and love to me,Thank you so much for all your support. Table of Contents,Abstract i,Student Declaration ii. Acknowledgements iii,Table of Contents v,List of Figures x. List of Tables xi, Alphabetical List of Acronym and Abbreviations Used xii. Chapter 1 Introduction 1,1 1 Background of the study 1.
1 2 Research Questions 11,1 3 Aim of this study 11. 1 4 Contribution to knowledge 12,1 5 Significance 13. 1 6 Structure of the thesis 14,Chapter 2 16,2 1 Introduction 16. 2 2 The Implementation of community development programs by. mining industries in Indonesia 16, 2 3 The nature of community development in the mining industry 25. 2 3 1 Community development how the mining industry defines. and practises it 35, 2 3 2 Participatory development in the mining industry s.
community development program 41,2 4 Theories of community development 51. 2 4 1 Community development in structural and communitarian. traditions 52, 2 4 2 Community development according to Foucault s. perspective 55,2 5 Summary 63,Chapter 3 66,3 1 Introduction 66. 3 2 Research site 67,3 3 Approach Case study methodology 68. 3 4 Research methods 72,3 4 1 Interviews 74,3 4 2 Sampling procedures 76.
3 4 3 Documentary evidence 78,3 4 4 Observation 81. 3 5 Data Analysis 82,3 6 Trustworthiness of the study 84. 3 7 Ethics and the rights of human participation 87. 3 8 Limitations of the study 88,3 9 Summary 89, Chapter 4 The Impact of a Copper and Gold Mining Company in. West Sumbawa District 92,4 1 Introduction 92,4 2 Social political background 92. 4 3 Profile of a copper and gold mining company in West Sumbawa. district 97,4 4 The location of the mining company 108.
4 5 The impact of the mining industry on the local community 114. 4 5 1 Economic impacts 115,4 5 2 Changes in local community lifestyle 121. 4 5 3 Changes in local community customs and social norms 124. 4 5 4 Changes in moral and ethical aspects 127,4 5 5 Environment impacts 130. 4 5 6 The conflict between the local community members 135. 4 5 7 Conflict between the mining company and the local. community 136,4 6 Summary 143, Chapter 5 Community Development and the Mining Company in. West Sumbawa District 147,5 1 Introduction 147, 5 2 Community development the mining company s expectations. policies concepts and objectives 148,5 3 Company led approach 159.
5 3 1 Infrastructure programs 167,5 3 2 Capacity building programs 172. 5 3 3 Charity donation programs 178,5 4 Corporate foundation approach 180. 5 4 1 Yayasan Pengembangan Ekonomi Sumbawa Barat,5 4 2 Yayasan Olat Perigi YOP 187. 5 5 Summary 199, Chapter 6 Local Community Participation in the Community. Development Programs 204,6 1 Introduction 204, 6 2 The participation of the local community in the community.
development programs 205,6 2 1 The education programs 206. 6 2 2 The health programs 209,6 2 3 The agriculture programs 214. 6 2 4 The local business development programs 233,6 2 5 The revolving fund program 235. 6 3 The role of NGOs 241, 6 4 The outcomes of the community development programs 246. 6 5 Summary 251,Chapter 7 The Role of the Local Government 256.
7 1 Introduction 256, 7 2 The West Sumbawa district and the Local Government Act 257. 7 2 1 The process involved in the establishment of West. Sumbawa as a new district 258, 7 2 2 The West Sumbawa district and its mining industry 260. 7 2 3 The stock divestiture process 267, 7 3 The role of the West Sumbawa government in the implementation. of community development programs 271,7 3 1 The West Sumbawa government s perception of. community development programs 271,7 3 2 The community development budget 275.
7 3 3 Local government involvement in the implementation of. community development programs 277,7 3 4 Factors which may impede negotiation 285. 7 4 Summary 289,Chapter 8 Discussion and Conclusion 292. 8 1 Introduction 292, 8 2 Participation of the local community in the decision making. process 293, 8 3 Power orientation and participatory development 300. 8 4 The role of local government and NGOs 305,8 5 Conclusion and recommendations 311.
References 326,Appendix A 348,Appendix B 351,Appendix C 355. Appendix D 359,Appendix E 362,Appendix F 368,Appendix G 373. Appendix H 375,List of Figures,Figure 4 1 Benete Port in the night 102. Figure 4 2 A haul truck 103,Figure 4 3 The activities in the open pit 103. Figure 4 4 Concentrate the final product of the mining company 104. Figure 4 5 Loading concentrate at Benete port that will be shipped to. buyer countries 104,Figure 4 6 Tailing pipe 105, Figure 4 7 A tunnel which was built by the mining company for the local.
community to go to other villages in the mining circumference area 106. Figure 4 8 A bus which transports the mining company employees to and. from the town site and the open pit 107, Figure 4 9 A cidomo traditional transportation of the local community 108. Figure 4 10 West Nusa Tenggara Province Indonesia consists of two. Islands Lombok and Sumbawa Islands 109,Figure 4 11 West Nusa Tenggara Province 109. Figure 4 12 Sumbawa Island 110,Figure 4 13 A small plane called Travira Air 112. Figure 4 14 A mining company modern luxury boat 112. Figure 5 1 The location where the mining company has conducted. community development programs 157, Figure 5 2 The organizational structure of the mining company s External. Relations department 159, Figure 5 3 The participatory rural appraisal PRA method employed by.
the mining company to establish the community development strategic. planning 163, Figure 5 4 The kinds of development programs which have been. conducted by the Community Development division of the mining company 166. Figure 5 5 Community development expenditure of the mining company. 2000 2008 169, Figure 5 6 The involvement of the local NGOs in the community. development programs implementation 177, Figure 5 7 YPESB s local business development program 184. Figure 5 8 YPESB s development programs 1998 2003 186. Figure 5 9 The new YPESB s development programs 2005 now 187. Figure 5 10 YOP s revolving fund program 189,Figure 5 11 YOP s proposal method 190. List of Tables, Table 4 1 The mining regulations in Indonesia and the implications 94.
Table 4 2 The Mining company activity stages in detail 98. Table 4 3 The occupation structure of the local community 116. Table 4 4 The household income before and after the mining operation 119. Table 4 5 Local community ownership of prestige assets before and after. the mining operation 123, Alphabetical List of Acronym and Abbreviations Used. AMDAL Analisis Mengenai Dampak Lingkungan or,Environmental Impact Assessment. RKL Rencana Pengelolaan Lingkungan Hidup or the,Environmental Management Plan. RPL Rencana Pemantauan Lingkungan Hidup or the,Environmental Monitoring Plan was. BAPPEDA Badan Perencanaan dan Pembangunan Daerah or. Local Planning Agency,BUPATI Head of district,CO Community Organizer.
CoW Contract of Work, CSIRO Commonwealth Scientific and Industrial Research. Organisation,CSR Corporate Social Responsibility,DAU Dana Alokasi Umum or General Allocation Fund. GDP Gross Domestic Product,HDI Human Development Index. JATAM Jaringan Anti Tambang, KSB Kabupaten Sumbawa Barat or West Sumbawa district. KSM Kelompok Swadaya Masyarakat a revolving fund, program related to the agriculture program which has.
been conducted by groups of the farmers wives,KTP Kartu Tanda Penduduk or citizen identity card. LBI Local Business Instiative,MDGs Millennium Development Goals. MNC Multinational Corporations,NGO Non government Organization. ORLA Orde Lama is the old order era,ORBA Orde Baru is the new order era. PAR Participatory Action Research, PDB Product Domestic Bruto or Gross Domestic Product.
PDRB Product Domestic Regional Bruto or Gross Regional. Domestic Product, PUSKESMAS Pusat Kesehatan Masyarakat or public medical centre. POSYANDU Pos Pelayanan Terpadu is a health program which. has been established by the Indonesian government, to improve the health of mothers and their children. PP Peraturan Pemerintah or government regulation,PR Public Relations. RT Rumah Tangga a community organization which has. been established to support the development,activities conducted by the local government at a. village level Each RT consists of 30 50 families, SMP Sekolah Menengah Pertama is a junior high school.
SMA Sekolah Menengah Atas is a senior high school level. S1 Sarjana is an undergraduate level,SRI System of Rice Intensification. TKI Tenaga Kerja Indonesia or Indonesian workers,UU Undang Undang or law. WALHI Wahana Lingkungan Hidup an NGO,YOP Yayasan Olat Parigi a community development. foundation of the mining company, YPESB Yayasan Pengembangan Ekonomi Sumbawa Barat a. community development foundation of the mining,Chapter 1 Introduction.
Introduction,1 1 Background of the study, In developing countries mining investment has been assumed to boost. economic growth and alleviate poverty It is claimed that mining industries. impact upon economic aspects in terms of generating revenues for host. governments reducing poverty facilitating corporate social investments and. contributing to the development of local infrastructure and creating jobs as. well as spurring local economic development Sarin et al 2006 p 5 It can. be argued that mining investment benefits local communities However. mining industries have also been associated with negative impacts on. communities and the environment Sarin et al 2006 In practice mining. companies continue to exploit natural resources in remote communities. where the mining industries are mostly located Kemp D 2010. Indonesia has become one of the developing countries which relies on the. mining industry to obtain revenue and benefits from this sector Included in. these benefits is the direct contribution to Indonesia s Product Domestic Bruto. PDB tax revenues royalties and multiplier effects such as employment. opportunities and local business development Kemp M 2001 Resosudarmo. et al 2009 Compared with other countries in Asia from Kazakhstan to the. Philippines Indonesia is a leader in copper gold silver nickel tin and coal. production Chairman 2002 The coal and mineral industry sector in 2000. contributed about 3 to Indonesia s Product Domestic Bruto PDB and by. 2007 this has increased to about 4 of the PDB Resosudarmo et al 2009. A further benefit from the mining sector has been obtained from taxes and. revenues It has been reported that total tax revenues from the mining sector. including oil and gas made up almost 50 of Indonesia s total tax revenues. International Copper Study Group 2002 These taxes and royalties are paid. by mining companies for the rights to mine in Indonesia. It can be argued that the mining industry is linked to the concept of.

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