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Gender Equality and Corporate Social Responsibility in Mining: an Investigation of the Potential for Change at Kaltim Prima Coal, Indonesia

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Gender Equality and Corporate Social Responsibility in Mining: an Investigation of the Potential for Change at Kaltim Prima Coal, Indonesia GENDER EQUALITY AND CORPORATE SOCIAL RESPONSIBILITY IN MINING: AN INVESTIGATION OF THE POTENTIAL FOR CHANGE AT KALTIM PRIMA COAL, INDONESIA By Petra Mahy A thesis submitted for the degree of Doctor of Philosophy of The Australian National University. RESOURCE MANAGEMENT IN ASIA PACIFIC PROGRAM CRAWFORD SCHOOL OF ECONOMICS AND GOVERMENT ANU COLLEGE OF ASIA AND THE PACIFIC THE AUSTRALIAN NATIONAL UNIVERSITY CANBERRA, SEPTEMBER 2011 Declaration I, Petra Mahy, declare that this thesis, submitted in fulfilment of the requirements for the award of Doctor of Philosophy, in the Resource Management in Asia Pacific Program, Crawford School of Economics and Government, College of Asia and the Pacific, Australian National University, is wholly my own work unless otherwise referenced or acknowledged. This thesis has not been submitted for qualifications at any other academic institution. © September 2011 Petra Mahy ii Acknowledgements I am indebted to the many people who provided assistance to me during the course of my PhD candidature. I would firstly like to acknowledge the invaluable guidance of Dr Kuntala Lahiri-Dutt as my principal PhD supervisor and the initiator of the Linkage Project with KPC. Kuntala introduced me to the field of mining and gender, made this research possible and provided sustained support throughout my research. I also thank my second supervisor Dr Colin Filer and advisor Dr Patrick Guinness who both provided advice on my research aims and feedback on initial drafts of this thesis. I acknowledge the support of staff members in Resource Management in the Asia-Pacific (RMAP) Program and of fellow students in my cohort including Nina, Hendra, Kathy, Keri, Masayuki, Rachel and Wijayono. My research was funded through an Australian Research Council (ARC) Linkage Project with Kaltim Prima Coal (KPC). The ARC funded my scholarship while KPC provided accommodation and transport. Managing Directors Evan Boll and Endang Ruchijat were supportive of the project. I also acknowledge the assistance of KPC’s External Affairs and Sustainable Development (ESD) Department, its General Manager Harry Miarsono and particularly the Community Empowerment (CE) Division. ESD staff welcomed me to the area and facilitated my research in countless ways. I feel very privileged to have been allowed access to ESD and to have been included in so many ESD work and social activities. I especially thank Abah, Agus, Arifin, Badrun, Bayu, Budi, Dewi Ariani, Dewi Rusmala, Defy, Edy, Erni Kusrini, Erni Susanti, Evi, Fadin, Gaga, Galuh, Harry Nuriman, Hatta, Ikhsan, Jeni, Jubaidah, Jumaiah, Junaidi, Kemal, Louise Pessireron, Manan, Marzel, Misran, Moko, Nugroho, Nurul Karim, Om Dong, iii Parjo, Pramono, Retno, Rina, Rosna, Rusdi, Sahat, Samsuriadi, Sopiansyah, Sugeng, Syl, Toni, Ubed, Umi, Wawan, Wijayono Sarosa, Yordhen, Yuliana Datubua and Zulfa. A great many people gave me their valuable time during the year I spent conducting fieldwork. There is one person who deserves special mention – I thank Yeta Marintang for inviting me into her family and giving me so much of her time and attention. Yeta tragically died in a car accident in 2009 and is greatly missed. I also thank those who assisted me with surveying and interviews including Afwan, Dewi, Evida, Joan, Nurhayati, Sadariah, Sari, Slamet, Tina and Wansian. During 2007, I lived in Barrack A26 in the Senior Camp and I thank Ajeng, Dewi, Ellya, Olivia, Lisa and Popi for their support and friendship. In addition to the ARC Linkage Project with KPC, I also acknowledge World Bank project funding for the survey that formed the basis for Chapter 5. Maps were produced by the ANU cartography unit. I am grateful to Ulla, Blue and Sophie for helping with draft reading. Finally, I thank all my family members and friends for their moral support throughout my candidature. iv Abstract This thesis presents an evaluation of the potential for gender equality to be promoted through Corporate Social Responsibility (CSR) in mining. Research was conducted at Kaltim Prima Coal (KPC), a major coal mining company located in East Kalimantan, Indonesia. Since the fall of President Suharto in 1998, Indonesia has increasingly embraced the concept of CSR as meaning the delivery of community development programs by large companies. Indonesia has also become decentralised and district governments and local communities have increased their demands for greater benefits from resource exploitation. Companies such as KPC have had to become active agents of development. Large-scale mining companies tend to employ majority male workforces and may have a series of gendered ‘impacts’ on local communities. Where mining companies act as development agencies their programs may also cause further social change. This thesis presents an evaluation of the potential for mitigating gendered impacts and striving for gender equality through CSR specific to KPC. It also looks outwards from this one specific case study of KPC to evaluate the recently developed guidelines on gender in mining by the World Bank, Rio Tinto and Oxfam Australia. This thesis is divided into three parts. Part I considers the various drivers of the CSR agenda and argues that due to the role of the male-dominated district government and local interest groups in driving the CSR agenda, women’s voices are marginalised from CSR debates. Part II presents an analysis of the gendered impacts of KPC’s mining operations taking the literature on the ‘impacts of mining on women’ as a starting point. Particular attention is paid to how female sex workers are depicted in this literature. The v thesis demonstrates that while there is certainly a strong case for needing to mitigate the gendered impacts of mining, the ‘impacts of mining on women’ approach tends to exaggerate ‘impacts’ and emphasise ‘victimhood’ and to assume that all women have similar experiences of living in mine-affected communities. The evidence from KPC shows that in fact women’s experiences of mining are very diverse. Part III investigates the gendered aspects of community development policy and implementation. An analysis of KPC’s livelihoods and HIV prevention programs reveals that there are a number of inherent limitations within the CSR paradigm that inhibit the achievement of gender equal outcomes, including the propensity for the company to place business objectives ahead of development aims and to use CSR benefits as a way of pacifying vocal groups. As these vocal groups are usually male, women tend to be overlooked as CSR beneficiaries. This thesis argues that the guidelines by the World Bank, Rio Tinto and Oxfam, while they do make some positive contributions to the discourse on mining and gender, all assume the existence of homogeneous women victims of mining. They also fail to recognise the inherent political and gendered limitations within CSR, and thus need to be re-evaluated in order to be more effective tools for change. vi Acronyms and Glossary ABC HIV prevention campaign slogan adat custom, tradition AIDS Acquired Immune Deficiency Syndrome AMDAL Analisa Mengenai Dampak Lingkungan. Indonesia’s Environmental Impact Assessment APBI Asosiasi Pertambangan Batubara Indonesia. Indonesian Coal Miners Association ARC Australian Research Council arisan revolving credit groups ART Anti-Retroviral Treatment ASM Artisanal and Small-Scale Mining AUD Australian Dollars AusAID Australian Government Overseas Aid Agency Badan Local level government department Bappeda Badan Perencanaan Pembangunan Daerah. District Development Planning Office barang baru new goods BP British Petroleum BPD Badan Perwakilan Desa. Village Representative Body BPPUTK Bumi Pelatihan dan Percontohan Usaha Tani Konservasi. KPC’s Farming and Conservation Training and Demonstration Centre BR Bumi Resources. A resources company within the Bakrie Group which own a majority share in KPC BRI Bank Rakyat Indonesia Camat Head of a subdistrict (kecamatan) CCI Corporate Community Involvement CD Community Development CE Community Empowerment (a division within the External and Sustainable Affairs Department at KPC) CEDAW Convention on the Elimination of All forms of Discrimination Against Women CoW Contract of Work. Indonesian mining licence under the 1967 mining law Comdev Community Development CSI Corporate Social Investment CSR Corporate Social Responsibility bapak father, Mr. Bupati District Head Darma Henwa Contractor company operating KPC’s Bengalon Operations Dayak Basaf An indigenous ethnic group in East Kalimantan Dharma Wanita Wives of civil servants group Dinas A local level government department DPD Dewan Perwakilan Daerah. Regional Representative Council DPRD District Legislature DWP Dharma Wanita Persatuan. United Dharma Wanita ECR External and Community Relations Department, a former KPC department EIA Environmental Impact Assessment vii ESD External Affairs and Sustainable Development Department at KPC ESDM National Department of Energy and Mineral Resources GAD Gender and Development Gerdabangagri Gerakan Daerah Pengembangan Agribusiness (Regional Agribusiness Development Movement). Slogan of East Kutai Government Gerwani Women’s branch of the Indonesian Communist Party GIA Gender Impact Assessment Golkar Functional Groups.The ruling political party during Suharto’s New Order era GOW Gabungan Organisasi Wanita. Umbrella organisation for district women’s groups GM General Manager (of a Department at KPC) GMI Global Mining Initiative GRDP Gross Regional Domestic Product GRI Global Reporting Initiative GTZ German Aid Agency Hari Ibu
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