EMPOWERED COMMUNITY VS DEPENDENT COMMUNITY: CORPORATE SOCIAL RESPONSIBILITY (CSR) IMPLICATIONS BY MINING COMPANIES IN SOUTH SUMATRA PROVINCE

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Mining business actors have an obligation to maintain the sustainability of the surrounding environment,
both in the physical and the social environment. Coal mining extraction activities are closely related to
the exploration and exploitation of natural resources. This activity is in contact with the interests of the
surrounding community, in particular with the negative impact caused. Mining companies in Indonesia
are bound by the Mineral and Coal Mining Act no. 4 of 2009 to carry out community development and
empowerment. Under the law, the companies are required to implement Corporate Social Responsibility
(CSR). Through the implementation of CSR is expected the company can provide a positive change for
the survival of communities around the mining area. PT BARA is one of mining companies that had
been implementing CSR since 1983. As a state-owned company PT. BARA has various binding
regulations in the implementation of CSR. The regulation comes from the central government as well as
the local government in which PT. BARA does its mining business. Every year PT BARA releases an
enormous amount of CSR funds, but the surrounding community is still in a state of poverty. It turns out
that the problem does not stop on poverty at all. The community becomes very dependent on the
company’s assistance. The purpose of the CSR program is to develop and empower the community has
not been able to achieve the goal. This dependence is caused by various reasons such as CSR policies
of companies as well as government and CSR implementation on society.

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