Policy strategy: Nickel mining contribution to rural development equity and social violence minimization in Kolaka Regency

Suliamin Kasnar, Sofyan Sjaf, Hermanto Siregar, Sri Mulatsih

Article ID: 5099
Vol 8, Issue 7, 2024

VIEWS - 168 (Abstract) 93 (PDF)

Abstract


The lack of attention from mining companies to the majority of areas still affected by mining activities can result in regional economic disparities and high levels of social violence. It is crucial to have policy strategies for mining contributions to rural development equity and social violence reduction through CSR assistance and other aid funds. This research employs the Multi-Criteria Decision Analysis method using the MULTIPOL analysis tool. Recommended action programs include the construction of schools, provision of scholarships, job openings, business capital, and infrastructure development, supported by strong regulations and law enforcement. Cracking down on illegal mining permits is essential to reduce environmental damage. Holistic and sustainable integration policies, alongside effective law enforcement, are necessary to achieve the goals of equitable development and social violence reduction. These steps should be reinforced with incentives for traditional/community leaders and increased police/military presence in villages within the next 2 years, particularly in zones 2 and 3 of the mining areas. Failure to implement these measures could escalate social violence, jeopardize security, and impede the operations of mining companies in Kolaka. The findings of this research support the priority of security and orderliness in development and underscore the importance of diverse research methods for mining area development policies.


Keywords


mining contribution; policy scenarios; rural development; social violence; MULTIPOL

Full Text:

PDF


References


A Kinseng, R. (2021). Socio-cultural Change and Conflict in the Coastal and Small Island Community in Indonesia. Sodality: Jurnal Sosiologi Pedesaan, 9(1), 1–17. https://doi.org/10.22500/9202134928

Acheampong, A. O., Dzator, J., & Shahbaz, M. (2021). Empowering the powerless: Does access to energy improve income inequality? Energy Economics, 99, 105288. https://doi.org/10.1016/j.eneco.2021.105288

Agarwal, S., Rahman, S., & Errington, A. (2009). Measuring the determinants of relative economic performance of rural areas. Journal of Rural Studies, 25(3), 309–321. https://doi.org/10.1016/j.jrurstud.2009.02.003

Al Rawashdeh, R., Campbell, G., & Titi, A. (2016). The socio-economic impacts of mining on local communities: The case of Jordan. The Extractive Industries and Society, 3(2), 494–507. https://doi.org/10.1016/j.exis.2016.02.001

Arellano-Yanguas, J. (2012). Mining and conflict in Peru: Sowing the minerals, reaping a hail of stones. In: Social Conflict, Economic Development and Extractive Industry. Routledge.

Batley, G. E., & Kookana, R. S. (2012). Environmental issues associated with coal seam gas recovery: Managing the fracking boom. Environmental Chemistry, 9(5). https://doi.org/10.1071/EN12136

Benshaul-Tolonen, A., Chuhan-Pole, P., Dabalen, A., et al. (2019). The local socioeconomic effects of gold mining: Evidence from Ghana. Extractive Industries and Society, 6(4). https://doi.org/10.1016/j.exis.2019.07.008

Brasier, K. J., Filteau, M. R., Mclaughlin, D. K., et al. (2011). Residents’ perceptions of community and environmental impacts from development of natural gas in the Marcellus shale: A comparison of Pennsylvania and New York cases. Journal of Rural Social Sciences, 26(1).

Browne, A. L., Stehlik, D., & Buckley, A. (2011). Social licences to operate: for better not for worse; for richer not for poorer? The impacts of unplanned mining closure for “fence line” residential communities. Local Environment, 16(7), 707–725. https://doi.org/10.1080/13549839.2011.592183

Brundin, E., Liu, F., & Cyron, T. (2022). Emotion in strategic management: A review and future research agenda. Long Range Planning, 55(4), 102144. https://doi.org/10.1016/j.lrp.2021.102144

Carter, C. (2013). The Age of Strategy: Strategy, Organizations and Society. Business History, 55(7), 1047–1057. https://doi.org/10.1080/00076791.2013.838030

Cattani, G., Porac, J. F., & Thomas, H. (2016). Categories and competition. Strategic Management Journal, 38(1), 64–92. https://doi.org/10.1002/smj.2591

Corlet Walker, C., Druckman, A., & Jackson, T. (2021). Welfare systems without economic growth: A review of the challenges and next steps for the field. Ecological Economics, 186, 107066. https://doi.org/10.1016/j.ecolecon.2021.107066

da Silva Neiva, S., Prasath, R. A., de Amorim, W. S., et al. (2021). Sustainable urban development: Can the balanced scorecard contribute to the strategic management of sustainable cities? Sustainable Development, 29(6), 1155–1172. https://doi.org/10.1002/sd.2215

De Jesus, M., & Hernandes, C. (2019). Generalized Violence as a Threat to Health and Well-Being: A Qualitative Study of Youth Living in Urban Settings in Central America’s “Northern Triangle.” International Journal of Environmental Research and Public Health, 16(18), 3465. https://doi.org/10.3390/ijerph16183465

ElAlfy, A., Palaschuk, N., El-Bassiouny, D., et al. (2020). Scoping the Evolution of Corporate Social Responsibility (CSR) Research in the Sustainable Development Goals (SDGs) Era. Sustainability, 12(14), 5544. https://doi.org/10.3390/su12145544

Fauzi, A. (2019). Sustainability Analysis Technique (Indonesian). Jakarta (ID): PT. Gramedia Pustaka Utama. pp. 1–296.

Fisher, S., Ludin, J., Williams, S., et al. (2001). Managing Conflict; skills & strategies for action (Indonesian). Mengelola Konflik.

Fordham, A. E., Robinson, G. M., & Blackwell, B. D. (2017). Corporate social responsibility in resource companies—Opportunities for developing positive benefits and lasting legacies. Resources Policy, 52, 366–376. https://doi.org/10.1016/j.resourpol.2017.04.009

Fuertes, G., Alfaro, M., Vargas, M., et al. (2020). Conceptual Framework for the Strategic Management: A Literature Review—Descriptive. Journal of Engineering, 2020, 1–21. https://doi.org/10.1155/2020/6253013

Grant, R. (2016). Contemporary Strategy Analysis: Text and Cases Edition. John Wiley & Sons Ltd.

Iazzolino, G., & Laise, D. (2016). Value creation and sustainability in knowledge-based strategies. Journal of Intellectual Capital, 17(3). https://doi.org/10.1108/JIC-09-2015-0082

Janikowska, O., & Kulczycka, J. (2021). Impact of minerals policy on sustainable development of mining sector – a comparative assessment of selected EU countries. Mineral Economics, 34(2), 305–314. https://doi.org/10.1007/s13563-021-00248-5

Jones, G. A., & Rodgers, D. (2011). The World Bank’s World Development Report 2011 on conflict, security and development: A critique through five vignettes. Journal of International Development, 23(7), 980–995. https://doi.org/10.1002/jid.1826

Kaftan, V., Kandalov, W., Molodtsov, I., et al. (2023). Socio-Economic Stability and Sustainable Development in the Post-COVID Era: Lessons for the Business and Economic Leaders. Sustainability, 15(4), 2876. https://doi.org/10.3390/su15042876

Karidio, I., & Talbot, D. (2019). Controversy in mining development: A study of the defensive strategies of a mining company. Journal of Sustainable Finance & Investment, 10(1), 18–43. https://doi.org/10.1080/20430795.2019.1657315

Khan, Z., Hussain, M., Shahbaz, M., et al. (2020). Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China. Resources Policy, 65, 101585. https://doi.org/10.1016/j.resourpol.2020.101585

Kotsadam, A., & Tolonen, A. (2016). African Mining, Gender, and Local Employment. World Development, 83, 325–339. https://doi.org/10.1016/j.worlddev.2016.01.007

Kuntoro, A. B. (2006). Perspectives on Rural Area Development (Indonesian). Inovasi, 6(18).

Labonne, B. (1999). The mining industry and the community: joining forces for sustainable social development. Natural Resources Forum, 23(4), 315–322. https://doi.org/10.1111/j.1477-8947.1999.tb00919.x

Lacey, J., & Lamont, J. (2014). Using social contract to inform social licence to operate: an application in the Australian coal seam gas industry. Journal of Cleaner Production, 84, 831–839. https://doi.org/10.1016/j.jclepro.2013.11.047

Lagakos, D. (2020). Urban-Rural Gaps in the Developing World: Does Internal Migration Offer Opportunities? Journal of Economic Perspectives, 34(3), 174–192. https://doi.org/10.1257/jep.34.3.174

Lee, M. D. P. (2008). A review of the theories of corporate social responsibility: Its evolutionary path and the road ahead. International Journal of Management Reviews, 10(1), 53–73. https://doi.org/10.1111/j.1468-2370.2007.00226.x

Loayza, N., & Rigolini, J. (2016). The Local Impact of Mining on Poverty and Inequality: Evidence from the Commodity Boom in Peru. World Development, 84, 219–234. https://doi.org/10.1016/j.worlddev.2016.03.005

Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard Business Review.

Moffat, K., & Zhang, A. (2014). The paths to social licence to operate: An integrative model explaining community acceptance of mining. Resources Policy, 39, 61–70. https://doi.org/10.1016/j.resourpol.2013.11.003

Murshed, S. M., & Tadjoeddin, M. Z. (2009). Revisiting the greed and grievance explanations for violent internal conflict. Journal of International Development, 21(1). https://doi.org/10.1002/jid.1478

Narula, S. A., Magray, M. A., & Desore, A. (2017). A sustainable livelihood framework to implement CSR project in coal mining sector. Journal of Sustainable Mining, 16(3), 83–93. https://doi.org/10.1016/j.jsm.2017.10.001

Ngo, L. M., & Anh, T. D. (2021). A new development model for traditional craft villages in urban fringes: A case study in ho chi minh city, vietnam. Journal of Regional and City Planning, 32(2), 99–109. https://doi.org/10.5614/jpwk.2021.32.2.1

Oishi, S., Bak, H., & Caluori, N. (2022). Cultural psychology of inequality: Current and future directions. Asian Journal of Social Psychology, 25(1), 103–116. https://doi.org/10.1111/ajsp.12516

Orihuela, J. C. (2012). The making of conflict-prone development: Trade and horizontal inequalities in Peru. European Journal of Development Research, 24(5), 688–705. https://doi.org/10.1057/ejdr.2012.21

Pennington, K., Williams, M. R., & Karvonen, M. (2006). Challenges facing rural community colleges: Issues and problems today and over the past 30 years. Community College Journal of Research and Practice, 30(8), 641–655. https://doi.org/10.1080/10668920600746086

Purba, J. (2002). Social environment management (Indonesian). Yayasan Obor Indonesia.

Purwanto. (2008). Social and educational research instruments: development and utilization (Indonesian). Pustaka Pelajar, 53(9).

Rupasingha, A., Goetz, S. J., & Freshwater, D. (2002). Social and institutional factors as determinants of economic growth: Evidence from the United States counties. Papers in Regional Science, 81(2), 139–155. https://doi.org/10.1007/s101100100091

Rustiadi, E. (2001). Shift Toward a New Paradigm of Regional Development (Indonesian). IPB University.

Sarkar, A. N. (2013). Review of strategic policy framework for re-evaluating “CSR” programme impacts on the mining-affected areas in India. In: Advances in Sustainability and Environmental Justice. Emerald Group Publishing Limited. https://doi.org/10.1108/S2051-5030(2013)0000011013

Sun, Y., Ak, A., Serener, B., et al. (2020). Natural resource abundance and financial development: A case study of emerging seven (E−7) economies. Resources Policy, 67, 101660. https://doi.org/10.1016/j.resourpol.2020.101660

Syahza, A., & Suarman, S. (2013). Development strategies for underdeveloped regions in an effort to accelerate rural economic development (Indoneisan). TJurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi Dan Pembangunan, 14(1), 126. https://doi.org/10.23917/jep.v14i1.166

Tadjoeddin, M. Z. (2002). Anatomy of Social Violence in Transitional Contexts: The Case of Indonesia 1990-2001 (Indoneisna). The National Library of Australia. pp. 1–8.

Tadjoeddin, M. Z., & Murshed, S. M. (2007). Socio-Economic Determinants of Everyday Violence in Indonesia: An Empirical Investigation of Javanese Districts, 1994–2003. Journal of Peace Research, 44(6), 689–709. https://doi.org/10.1177/0022343307082063

Walter, M., & Martinez-Alier, J. (2010). How to Be Heard When Nobody Wants to Listen: Community Action against Mining in Argentina. Canadian Journal of Development Studies/Revue Canadienne d’études Du Développement, 30(1–2), 281–301. https://doi.org/10.1080/02255189.2010.9669292

Wen, Q., Li, J., Mwenda, K. M., et al. (2022). Coal exploitation and income inequality: Testing the resource curse with econometric analyses of household survey data from northwestern China. Growth and Change, 53(1), 452–469. Portico. https://doi.org/10.1111/grow.12592

Young, E., & Quinn, L. (2002). Writing Effective Public Policy Papers: A Guide for Policy Advisers in Central and Eastern Europe. In Budapest: Open Society Institute.

Zabsonré, A., Agbo, M., & Somé, J. (2018). Gold exploitation and socioeconomic outcomes: The case of Burkina Faso. World Development, 109, 206–221. https://doi.org/10.1016/j.worlddev.2018.04.021




DOI: https://doi.org/10.24294/jipd.v8i7.5099

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Suliamin Kasnar, Sofyan Sjaf, Hermanto Siregar, Sri Mulatsih

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.