Imam Koeswahyono
Independent

Fachrizal Afandi
University of Brawijaya – Department Criminal Law

April 12, 2013

T. Lambooy, A. Kusumadara, A. Argyrou, M. Istiqomah (eds.) CSR in Indonesia: Legislative Developments and Case Studies, Konstitusi Press, Utrecht University and Brawijaya University, Malang, Indonesia 2013 
Abstract: 

In this chapter, a new Corporate Social Responsibility (CSR) model is introduced in the land dispute resolution, which involves disputes over plantation ownership between local companies and people. The model provides a reward grant and basic-need facilities involving health and education, proven to solve the plantation land disputes in Malang and Blitar East Java province, which are referred to as Access Control Based (ACB) CSR. This model provides a reward grant to landless farmers in empowering their welfare instead of reclaiming the plantation land both in Malang and Blitar.

This chapter, which is based on field research concerning state and private plantation companies, proposes a strategy for the plantation land dispute resolution by applying the ACB CSR model. By applying the ACB CSR model, the authors suggest the establishment of an institution or organisation which would be competent to coordinate the plantation companies when they are planning and performing their CSR duties. The suggested institution or organisation can be a Non-Governmental Organisation (NGO). They can closely monitor and control the realisation of the companies’ commitment to CSR. Therefore, the plantation companies will maintain the implementation of their CSR commitment, for example by not reducing the amount of their CSR funds that plan to allocate to the landless farmers having land dispute with the companies. Besides that, the NGO can monitor the productive and useful allocation of the CSR funds by the farmers.

The field research found that a State-Owned Plantation company, PT Perkebunan Nusantara XII has implemented the ACB CSR model in solving their plantation land dispute with the people around the plantation. In Blitar regency, a private plantation company has implemented the ACB CSR model when they distributed part of their plantation land to farmers around the company. They gave the farmers the right to cultivate the distributed land. Giving the right to cultivate land is similar to issuing stocks to a company’s share-holders, although in the right to cultivate land, the farmers receive land, not commercial papers.

However, the strategy for the plantation land dispute resolution by applying the ACB CSR model cannot be generalised when it is applicable to each different case; considering that the management system and risk of each plantation is different from one to another based on its situation and field condition. The strategy for the plantation land dispute resolution by applying the ACB CSR model cannot be generalised to be applicable in each different case; considering that the management system and risk of each plantation is different from one to another based on its situation and field condition.

Keywords: Land Dispute, Plantation, Corporate Social Responsibility, Access Control

Paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2264159