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nfrastructure and human resources are among the major problems facing the government, especially when linked to the development of Indonesia as a whole. The current city-oriented development or development that is more favorable to urban areas has led to the widening gap between city and village in terms of economic growth and community development.

As a consequence, many young villagers prefer to leave their village for the big cities to pursue their luck. Despite holding a university degree in specific fields of study, many are reluctant to stay in their home village. This is partly caused by the absence of job opportunities suited to their educational background.

One of the keys to solving the problem is by engaging the private sector in empowering the local community’s economy under their CSR programs. Even though CSR programs cannot totally prevent the migration trend to the cities, empowering the local village economy will help them improve their livelihood or acquire new knowledge and skills that will develop their livelihood.

There has been a growing awareness among most mining companies operating in remote areas of the importance of developing communities living close to their operational sites. Several companies have even introduced a program called Desa Binaan in which the capacity and competence of the village and its community is fostered.

Coal producer PT Adaro Indonesia has launched such a village development program under the name Gerbang Aman (Gerakan Pembangunan Adaro Mandiri). Popularly called Desa Adaro Mandiri, the program kicked off in 2009 and is targeted to be completed in 2012.

Within three years, the village is expected to have three independent village institutions and concrete village development with adequate regional spatial management. Besides, the village has a community that undertakes programs based on their own initiative and self-reliance.

PT Adaro Indonesia’s general manager of operations Priyadi said that most residents living in the vicinity of the mining site do not know what will they do when the mining company ceases operation. For many of them, their livelihoods are linked to the mining activities. This will not occur if the community has the potential to support their own livelihood.

This program, one of the company’s efforts to build a self-supporting village at its operational site, involves the participation of the whole village community to allow them to foster a sense of belonging and to play an active role in developing their village, according to Priyadi.

Through the program, the village administration is given training to not only perform administration tasks better but also to acquire the skills and attitudes that are required to provide betters services to the public. The program also helps to develop the business potential in the village in order to enhance the community’s economy.

“The implementation of the programs has been based on the potential, the village’s needs and the community’s preparedness to run the programs to enable them to form an economically self-supporting community,” he said.

Under the CSR program, Adaro also assists families to set up home industries that have the potential to grow. For instance, through its Microfinance Institution (LKM) formed by the company’s CSR team, the company extended a Rp 50 million (US$5,800) in loan to Haj. Amidan family that run a natural honey business in Padang Panjang district, Tabalong regency, near where Adaro operates.

The fund from Adaro came at the right time as the family was in dire need of funds and a supporting technology that would enable the family to boost the quality of the honey, said Arif Rachman Hakim, son of Haj. Amidan, to visiting reporters at his showroom that displays packaged honey in Tabalong regency, South Kalimantan, recently.

Meanwhile, PT Newmont Nusa Tenggara has to date implemented 208 infrastructure projects in Maluk, Jereweh and Sekongkang district, West Sumbawa regency, as part of the company’s commitment to community development. Out of the total 208 projects, 72 are schools that will allow more local residents to attend schools at different levels from kindergarten, elementary school to senior high school level.

To improve local human resources, Newmont has also awarded scholarships to 800 students, including university students since 2008. In addition, the company also provides guidance for students who are going to attend national examination (UN) for junior and senior high school level in Sekongkang district, Maluk and Jereweh district.

Thanks to the learning guidance program, the number of graduates from junior and senior high schools has increased. The total number of junior high school graduates increased from 93.15 percent in 2009 to 99.64 percent in 2010 while, the number of graduates of senior high schools has increased from 63.05 percent in 2009 to 92.97 percent in 2010 and 100 percent in 2011.

“Principally, Newmont runs CSR programs to encourage local communities living around the company’s operation to be socially, culturally and economically prepared after the mine closes,” said Newmont in
a statement.

On infrastructure, Newmont has established cooperation with the management of National Community Empowerment Program (PNPM), in Aik Kangkung Village, Sekongkang district, for the construction of roads and road repairs in 2010.

Meanwhile, state oil firm PT Pertamina’s CSR manager Ganapati S. Satyani highlighted the importance of empowerment and development in a village, arguing that the village community would not leave the village if the village had qualified human resources. “Young people will prefer to stay in the village and help develop their village,” Ganapati was quoted by Republika as saying.

Currently, Pertamina has four Desa Binaan located around its operational sites, namely in Semarang, Boyolali, Cepu, and Tegal. Under the Village Development program, Pertamina assists the village to develop in four aspects, namely education, health, environment and infrastructure. — JP