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il palm plantation development and its associated industries have been playing a key role in economic development at the regional and national level. It is one of the powerful engines that drives development in the remote, least populated and least developed regions, such as the interiors of Central and West Kalimantan, and key in addressing unemployment among those of productive age by providing enormous employment as well as business opportunities. Oil palm plantations employ hundreds of thousands of people and impact millions of Indonesians, and create multiplier socio-economic effects in terms of local economy development and political stability.

The industry has proven its resilience and versatility against economic downturns and has cushioned the impact of both socio-political reforms and financial crises. The total area of oil palm plantations in Indonesia is the largest in the world and the fastest growing industry. The unique features of oil palm plantations, a combination of capital and labor intensive investment serves as an effective means to address the issue of poverty eradication and distribution of wealth. It is also a catalyst for the acceleration of development of marginalized regions, while on the other hand it optimizes the use of marginal and degraded logged-over land throughout the archipelago.

Development of oil palm plantations is closely associated with many stakeholders, particularly local communities and employees. Relationships and interaction between plantation companies and its stakeholders are critical to business sustainability. Social responsibility of the companies is defined as Corporate Social Responsibility (CSR), which transcribes a set of values, principles and practices of being ethical and socially responsible toward its stakeholders.

At oil palm plantations, CSR is seen both as a social investment, a business case, with tangible long-term returns and a manifestation of commitment to do good, decent business as a socially responsible corporation. As an investment, CSR serves as a business enabler to ensure business security, which contributes to productivity improvement and employee retention in which companies with good CSR principles and practices will likely maintain workers' satisfaction. Also, it is a key to its survival and inevitable both as a business case and a prerequisite for business continuity. It serves as risk management and to leverage operational risks, which eventually secure long-term returns.

The level of corporate commitment to CSR by any company can be measured through its corporate policies, procedures and institutionalized practices on industrial relations, community development and stakeholder relations and by assessing its compliance to applicable laws, regulations and conventions on universal human rights principals.

CSR at oil palm plantations is included in the sustainability concept that is articulated in principles and criteria of the Roundtable on Sustainable Palm Oil (RSPO P&C). The RSPO P&C has specified eloquently CSR in sustainable oil palm plantations in Principle 6 on "Responsible consideration of employees and individuals and communities affected by growers and mills." Such a principle is translated into a number of criteria and indicators applicable to sustainable oil palm plantation development.

Indeed, nowadays most plantation companies are striving to adopt and implement the RSPO P&C, including principles and criteria on CSR. Albeit, only a handful of RSPO members are certified, however, RSPO P&C and the certification scheme have become a standard platform for oil palm plantation companies.

Both the RSPO P&C and common understandings on sustainability of oil palm plantations call for the adoption and mainstreaming of CSR principles at all oil palm plantation business operations, ranging from inception prior to land development to replanting stage. Such a commitment has to be mirrored in all corporate documents, including those on human resources, employee and industrial relations, stakeholder relations, community development, public affairs, etc.

The implementation of CSR at oil palm plantations is to commence from the planning stage. Prior to development, a company has to perform a social impact assessment and identify plans to mitigate negative impacts and promote positive ones. A mechanism for open and transparent communication and consultations with all stakeholders, including process on grievances and complaints handling, should be developed and put in place. At that stage, the company should conduct a well documented process of negotiation and compensation for the loss of legal or customary rights of local community members.

In regard to industrial relations, the adoption of CSR is demonstrated in corporate policies and practices that ensure appropriate welfare and well being of employees, respect for the rights of employees on freedom of expression and association, respect for gender equality and child rights (no child labor) and the application of just and nondiscriminatory treatment.

Local socio-economic development and community development programs are integral parts of CSR. There are two typical CSR-related programs in oil palm plantations, one is the partnership with plasma or smallholders' plantation scheme as a business partnership for economic empowerment, and the other is integrated community services and development programs. Investment in community-related programs is set to grow along with growing maturity of the oil palm plantations.

One of the tangible plantation development's beneficiaries is the plasma farmers or smallholders of oil palm plantations who are thriving with the introduction of the government-backed scheme based on Government Regulation No. 76/2007. The regulation stipulates that each farming household is to be given ownership of oil palm land in partnership with the designated plantation company. The plasma scheme now accounts for almost 40 percent of the plantations.

The plasma scheme reflects the true nature of CSR by which a company is responsible for nurturing its partner farmers in adopting good agricultural practices and productivity on par with the company's standards toward ensuring economically sustainable and profitable yields. plasma also helps a community access financial support and ensures legal property ownership that can be capitalized to further stimulate the community's economic development.

Tangible roles and contributions of oil palm plantations in local sustainable development, particularly in economic empowerment, are demonstrated in thriving business opportunities on top of higher employment rates. The companies are also tapping local ingenuity and resources for business partnerships. However, building entrepreneurship and credibility of local community-based enterprises has been a challenge most companies have encountered, which they continuously try to address.

Contributions of oil palm plantations in local development include education advancement in building the foundation for sustaining improved welfare of future generations. Programs on the improvement of basic public services, such as sanitation and clean water, and infrastructure development, e.g., improved access to socio-economic activities, and socio-cultural development are regular CSR programs and a common platform to address a local community's needs and development for a better future.

Oil palm plantations have become an agent of change for social transformation. Indeed, such development is only made possible with the support of other stakeholders, particularly local government and civil society.

The CSR programs related to community development must be done in tandem with government agencies as the primary caregivers. Partnership with the government and support from NGOs and civil society are required to continue improvement of the quality of life of both local community members and stakeholders. Oil palm plantations undeniably have significant positive socio-economic impacts both directly on the community surrounding a plantation as well as indirectly on other beneficiaries and local economic growth.

CSR at oil palm plantations goes beyond doing the right thing in the right way but is also a platform to ensure that companies are good world citizens with sustainable returns of both social and financial investment.

Last but not least, oil palm plantations have proven to be the most effective development vehicle to reach the most remote areas in otherwise uncharted territory.

It is also politically strategic to support the national government in maintaining the unity and integrity of Indonesia by distributing the wealth and advocating social harmony among a diversity of ethnicity and cultures.

With all the impacts and contributions of oil palm plantations, it is clear that the industries have significantly impacted on all aspects of life of the stakeholders where plantations are located, and have had multiplier effects on local and national economic development.

It is timely for all stakeholders to further enhance their support for the development of oil palm plantations and further advocate the adoption of sustainable oil palm plantation principles and practices where CSR is practiced.