Form of Social and Environmental Responsibility in PT. Asian Agri Company (Palm Oil Factory in Tanah Datar Village, Asahan Regency)
DOI:
https://doi.org/10.55885/jprsp.v5i2.528Keywords:
Corporate Social Responsibility, Waste Management, Community Empowerment, Sustainable Development, PT. Asian AgriAbstract
This study examines the implementation of Corporate Social Responsibility (CSR) by PT. Asian Agri, especially at the Palm Oil Mill in Tanah Datar Village, Asahan Regency, in the context of Government Regulation Number 47 of 2012. The study uses a normative and empirical juridical approach through analysis of laws and regulations, field observations, and in-depth interviews with the company, local communities, and village governments. The results of the study indicate that PT. Asian Agri has implemented various CSR programs that include liquid and solid waste management, community empowerment, and environmental conservation. This program has a positive impact in the form of reducing environmental pollution, increasing community welfare, and supporting sustainable development. However, challenges in terms of technology investment costs and community environmental awareness are still obstacles. Therefore, the study recommends increasing collaboration between companies, governments, and communities to optimize the impact of CSR and stricter regulatory oversight for program sustainability.References
Aldila, M. R., & Santiago, F. (2018, September). CSR Implementation Concept of Mining Company in Indonesia According to Applicable Law and Theory. In 2018 International Conference on Energy and Mining Law (ICEML 2018) (pp. 197-200). Atlantis Press. https://doi.org/10.2991/iceml-18.2018.43
Anggriani, R. (2024). Application of Legal Sanctions Against CSR Lawlessness by Limited Liability Companies. In E3S Web of Conferences (Vol. 594, p. 04003). EDP Sciences. https://doi.org/10.1051/e3sconf/202459404003
Armansyah, A., & Fadjar, A. (2024). Regulation of Corporate Social Responsibility through Environmental Development Program: A Review from a CSR Perspective. jhbbc, 86-102.
Arta, E. D., & Putri, A. (2024). Normative Review of The Dissolution of Limited Companies Proposed by Shareholders. Alauddin Law Development Journal, 6(2), 365-374.
Asmara, T. T. P., Murwadji, T., Kartikasari, & Afriana, A. (2023). Corporate social responsibility and cooperatives business sustainability in Indonesia: Legal perspective. Sustainability, 15(7), 5957. https://doi.org/10.3390/su15075957
Cahaya, F. R., Porter, S., Tower, G., & Brown, A. (2015). The Indonesian government’s coercive pressure on labour disclosures: conflicting interests or government ambivalence?. Sustainability Accounting, Management and Policy Journal, 6(4), 475-497. https://doi.org/10.1108/SAMPJ-09-2014-0051
Christiani, T. A. (2016). Normative and empirical research methods: Their usefulness and relevance in the study of law as an object. Procedia-Social and Behavioral Sciences, 219, 201-207. https://doi.org/10.1016/j.sbspro.2016.05.006
Fitriasari, D., & Kawahara, N. (2018). Japan investment and Indonesia sustainability reporting: an isomorphism perspective. Social Responsibility Journal, 14(4), 859-874. https://doi.org/10.1108/SRJ-04-2017-0062
Gillespie, P. (2012). The challenges of corporate governance in Indonesian oil palm: opportunities to move beyond legalism?. Asian Studies Review, 36(2), 247-269. https://doi.org/10.1080/10357823.2012.685447
Gunawan, J. (2019). The development of corporate social responsibility in accounting research: evidence from Indonesia. Social Responsibility Journal, 15(5), 671-688. https://doi.org/10.1108/SRJ-03-2018-0076
Hermawan, B. E. (2018, September). The Problem of the Implementation of Criminal Certification on Corporate Social Responsibility (CSR) on Business Conduct in Mining in Indonesia. In 2018 International Conference on Energy and Mining Law (ICEML 2018) (pp. 39-45). Atlantis Press. https://doi.org/10.2991/iceml-18.2018.11
Hoda, R., Noble, J., & Marshall, S. (2012). Developing a grounded theory to explain the practices of self-organizing Agile teams. Empirical Software Engineering, 17(6), 609-639. https://doi.org/10.1007/s10664-011-9161-0
Idowu, S. O. (Ed.). (2016). Key Initiatives in Corporate Social Responsibility. CSR, Sustainability, Ethics & Governance. Cham: Springer International Publishing.
Joseph, C., Gunawan, J., Sawani, Y., Rahmat, M., Noyem, J. A., & Darus, F. (2016). A comparative study of anti-corruption practice disclosure among Malaysian and Indonesian Corporate Social Responsibility (CSR) best practice companies. Journal of cleaner production, 112, 2896-2906. https://doi.org/10.1016/j.jclepro.2015.10.091
Kania, I., Anggadwita, G., & Alamanda, D. T. (2021). A new approach to stimulate rural entrepreneurship through village-owned enterprises in Indonesia. Journal of Enterprising Communities: People and Places in the Global Economy, 15(3), 432-450. https://doi.org/10.1108/JEC-07-2020-0137
Kurniawan, T. A., Meidiana, C., Goh, H. H., Zhang, D., Othman, M. H. D., Aziz, F., ... & Ali, I. (2024). Unlocking synergies between waste management and climate change mitigation to accelerate decarbonization through circular-economy digitalization in Indonesia. Sustainable Production and Consumption, 46, 522-542. https://doi.org/10.1016/j.spc.2024.03.011
Levashova, Y. (2018). The accountability and corporate social responsibility of multinational corporations for transgressions in host states through international investment law. Utrecht Law Review, 14(2). https://doi.org/10.18352/ulr.441
Maryudi, A., Nawir, A. A., Permadi, D. B., Purwanto, R. H., Pratiwi, D., Syofi'i, A., & Sumardamto, P. (2015). Complex regulatory frameworks governing private smallholder tree plantations in Gunungkidul District, Indonesia. Forest Policy and Economics, 59, 1-6. https://doi.org/10.1016/j.forpol.2015.05.010
Mehmetoglu, M., & Altinay, L. (2006). Examination of grounded theory analysis with an application to hospitality research. International Journal of Hospitality Management, 25(1), 12-33. https://doi.org/10.1016/j.ijhm.2004.12.002
Muhammad, A., & M Djafar, M. M. (2021). Social and Environmental Responsibility of Tidore ESPP to the Community of Tidore City Village, Tidore Islands. International Journal of Multicultural and Multireligious Understanding, 8(12), 39–51. http://dx.doi.org/10.18415/ijmmu.v8i12.3144
Murjiyanto, R., Andani, D., Wibawanti, E. S., & Fransisca, S. (2023, April). Corporate social and environmental responsibility of companies in the natural resources business industry: An Indonesian juridical perspective. In IOP Conference Series: Earth and Environmental Science (Vol. 1165, No. 1, p. 012032). IOP Publishing. http://dx.doi.org/10.1088/1755-1315/1165/1/012032
Nasir, M., Bakker, L., & van Meijl, T. (2024). Challenges to implementing oil palm plantation legislation in Indonesia. The Theory and Practice of Legislation, 1–22. https://doi.org/10.1080/20508840.2024.2435776
Nasir, M., Bakker, L., & van Meijl, T. (2025). Government Supervision of Oil Palm Plantations in Indonesia: Legal Issues and Proposed Remedies. Law and Development Review, 18(1), 1-31.
Neale, J. (2016). Iterative categorization (IC): a systematic technique for analysing qualitative data. Addiction, 111(6), 1096-1106. https://doi.org/10.1111/add.13314
NUSWANTARA, D. A., & PRAMESTI, D. A. (2020). Corporate social responsibility regulation in the Indonesian mining companies. The Journal of Asian Finance, Economics and Business, 7(10), 161-169. https://doi.org/10.13106/jafeb
Pratiwi, I. K., & Istirawati, I. (2024). Strategy For Development Of Micro/Small/Medium Enterprises (MSMEs) Based On A Circular Economy: Case Study MSMEs In Mataram. IQTISHADUNA, 15(1), 83-101.
Rosser, A., & Edwin, D. (2010). The politics of corporate social responsibility in Indonesia. The Pacific Review, 23(1), 1-22. https://doi.org/10.1080/09512740903398314
Setiawati, D., Astutik, Z. A., Alfateh, H., & Naranta, E. H. G. (2022). Corporate Social Responsibility Supervisors in Indonesia: Analysis of Local Government Regulation in 10 Province in Indonesia. Varia Justicia, 18(2), 97-113. https://doi.org/10.31603/variajusticia.v18i2.7022
Situmorang, S. S., & Nurdin, B. (2024). Legal Void of Social and Environmental Responsibility in the Implementation of Corporate Social Responsibility in the Energy and Natural Resources Sector. Journal of Social Research, 4(1), 23-33. https://doi.org/10.55324/josr.v4i1.2331
Sugino, T., Mayrowani, H., & Kobayashi, H. (2015). Determinants for CSR in developing countries: the case of indonesian palm oil companies. The Japanese Journal of Rural Economics, 17, 18-34. https://doi.org/10.18480/jjre.17.18
Tabsuthurrizqo, T. (2022). PENGARUH PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP AGRESIVITAS PAJAK PERUSAHAAN MANUFAKTUR. Ekonis: Jurnal Ekonomi dan Bisnis, 24(2). http://dx.doi.org/10.30811/ekonis.v24i2.3632
Taekema, S., & van der Burg, W. (2024). Theoretical and normative frameworks for legal research. Contextualising Legal Research (hal. 79–92). Edward Elgar Publishing.
Tyson, A., Varkkey, H., & Choiruzzad, S. A. B. (2018). Deconstructing the palm oil industry narrative in Indonesia: evidence from Riau Province. Contemporary Southeast Asia, 40(3), 422-448.
Waagstein, P. R. (2011). The mandatory corporate social responsibility in Indonesia: Problems and implications. Journal of business ethics, 98, 455-466. https://doi.org/10.1007/s10551-010-0587-x
Wibawani, S. A., Prasetyo, D. A., & Suasungnern, S. (2024). ENVIRONMENTAL REGULATION IN CORPORATE CSR PRACTICES IN INDONESIA: ENVIRONMENTAL REGULATION IN CORPORATE CSR PRACTICES IN INDONESIA. PENA LAW: International Journal of Law, 2(2).
Wiralestari, W. (2022). Quality of corporate social responsibility information in Indonesia. Jurnal ASET (Akuntansi Riset), 14(1), 115-124. https://doi.org/10.17509/jurnal aset.v14i1.39436
Zamroni, A., Putri, W. E. C., & Sagala, S. T. (2022). Evaluation of Corporate Social Responsibility programs for local communities around mining companies in Kalimantan, Indonesia: environmental, economic, and social perspectives. Sustinere: Journal of Environment and Sustainability, 6(1), 66-78. https://doi.org/10.22515/sustinerejes.v6i1.195
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Journal of Public Representative and Society Provision
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
