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UB research highlights downstream collaborations between companies, communities in Gresik
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G
resik Regency, East Java has been spotlighted as a center for inclusive and sustainable mineral downstream growth, according to the latest research by the Faculty of Economics and Business at Brawijaya University (FEB UB).
The study, titled "Final Report on Building Partnerships Between Communities, Local Governments and Companies to Optimize Downstream Benefits", found that PT Freeport Indonesia (PT FI) has showcased a real commitment to supporting mutually beneficial collaboration with local communities.
"By involving village governments and MSMEs [micro, small and medium enterprises], PT FI not only creates jobs, but also empowers local communities through various economic empowerment programs," lead researcher Hendi Subandi said in a written statement.
According to Hendi, PT FI has created job opportunities for the Gresik community through the "Rembuk Akur" communication forum, which involves village governments from nine Ring 1 villages. The forum facilitates the recruitment of local workers and has succeeded in attracting 2,000 local applicants, though most still face challenges in meeting the required skill standards.
Along with recruiting local workers, the research also revealed that PT FI prioritizes local MSMEs and small and medium enterprises (SMEs) in various sectors, such as construction, catering, security and construction waste management.
The study also highlights the importance of the hexahelix partnership model, which involves downstreaming companies, local governments, nongovernmental organizations, academics, communities, MSMEs and the media. The approach allows various challenges to be tackled more effectively, ensuring the sustainability of company operations while improving community welfare.
"We found that downstreaming not only provides economic benefits but also significant social impacts for local communities."
Hendi and his team recommended strategic steps to further strengthen the relationship between companies and communities, including funding for the Songkok Kemuteran IKM Center and the Pelemwatu Menganti Metal Machinery IKM Center, which create greater opportunities for MSMEs to be involved in the smelter industry supply chain.
The study also recommends strengthening skills training programs for local communities to meet industry needs. To that end, PT FI utilizes the JIIPE Special Economic Zone (KEK) as an innovation center to empower local MSMEs, ensuring they can compete in the large industrial supply chain.
"We see great potential from local MSMEs, but they require support to meet the standards of large companies like PT FI," Hendi concluded.
