Community Development


Community development (CD) has been a strategic issue between mining as well as oil and gas industries and their local stakeholders. According to Phillip Kotler, the basic idea behind the community development is to create a quality environment for the people currently living and working in the community. Community development experts support good schools, strong neighborhoods, increased public safety and adequate health facilities, basically emphasizing the role of strong community-based institutions in affecting the quality of a place. A lot of community development philosophy originated with the idea of community participation and citizen empowerment within neighborhoods rather that in whole cities, but later developed into guiding concept applied to overall urban development (Kotler, Heider and Rein. 1993).

Energi Mega Persada has been conducting CD programs within their buffer area to increase community’s prosperity surrounding the operations area and as social investment to reduce company’s business risks.

Stakeholders’ trust is Company’s social capital that expect to be able reduce the business risk. The reduction on security issues and conflicts between the community and the Company will increase Company’s competitiveness as a major national oil and gas company. According to the past experiences, before 2005, various social conflicts had been occurred to disturbed Company’s operational.

To anticipate the continuous social problems, therefore in 2005-2009, Energi Mega Persada conducted CD audit, social study and social mapping. The social studies results have become a blue print for the company to initiate important change anticipating the continuous social changes to reduce company’s operations disturbance.

The momentum towards CD program was done in 2007 where CD program developed by the Company has changed its paradigm. Before 2007, their CD activities were not focused, partial and tend to be more char of Michael Potter’s Diamond theory  that the CD program focuses on a theme of local economic development to improve the competitiveness of the integrated areas between the fields of economics, education, health, infrastructure and the environment to sustainable long-term oriented.

Figure 1: CSR ProgramLocal Resources Potential-Based Regional Development


Since then, the theme of development planning, goals and objectives of the CSR programs are formulated in a participatory manner involving all stakeholders in the assisted areas. This activity begins with the Community Participatory Rapid Appraisal (PARCA) followed by FGD (Focus Group Discussion) Local Economic Development Collaborative agenda that produces an integrated regional economic development in the medium and long term. In the FDG, it was also agreed to establish a Working Group (Pokja) as an institution that would oversee collaborative multi-stakeholder collaborative agenda that has been arranged.

In general, the results of a participatory assessment using PARCA and FGD, there are some major issues in common that the expectations and goals of the local community against the company. The objectives/expectations of the public to the company’s CSR program are:

  1. Increase revenue
  2. Improve the quality of education
  3. Improve health conditions and health facilities
  4. Improve the quality of human resources through capacity building
  5. Improve infrastructure and public services
  6. Empowering local organizations

CD program that is currently under development has not only benefited the quality and welfare of the community, but also has benefited the company. The benefits are the reduction of business risk due to non-technical, such as security threats, conflicts between communities or communities with the company, and others. Business risk decreases, the impact to increase the value and benefits of the company.

In addition, CD program is not only to establishing the economic capital in the community but also forms of social capital. The combination of economic and social capital is the foundation for sustainability agendas improvements in society, at the time of this CD program is still there-and the program has ended. Social capital is a trust formed between community groups, faith communities among the companies and other stakeholders; fabric of cooperation and networking and communication quality. Powered by the Working Group, the strengthening of social capital in the community is the main agenda.


In 2007, to sharpen the company launched the Community Based Resource Development (CBRD). Starting from CBRD, a theme was formulated along with the local economic development stakeholders, such as sago based food processed and rubber theme for EMP Malacca Strait SA, fishery theme for EMP Bentu Limited, EMP Korinci Baru Limited, EMP Gelam and EMP Tonga, and Rutai banana for EMP Semberah. CBRD program itself covers the economic; education and health are integrated with each other.


CSR achievements are referring to the 6 goal of participatory community assessment results as well as from the perspective of the company, are:

  1. Economy
  2. Education
  3. Health
  4. Environment
  5. Infrastructure

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