IAJPS 2018, 05 (04), 2392-2404 Yani Taufik ISSN 2349-7750 CODEN [USA]: IAJPBB ISSN: 2349-7750 INDO AMERICAN JOURNAL OF PHARMACEUTICAL SCIENCES http://doi.org/10.5281/zenodo.1218241 Available online at: http://www.iajps.com Research Article COMMUNITY PREPARATION OF PEOPLE ON THE FRONTIER IN THE FACING OF MINING OPERATIONS Yani Taufik* Department of Agricultural Extension, Faculty of Agriculture, University of HaluOleo Kampus Hijau Bumi Tri Dharma Andounohu - Kendari- Indonesia, 93232 Abstract: In many mining locations in Indonesia conflicts harmful to local people, have occurred due to misunderstandings and incomplete information received by groups of people in the community and/or the mining company. This paper discusses the community preparation which finally formed a local financial institution from 2009-2014; a process finally brought into being a series of pivotal local financial institutions. The ethnographic method has been employed in the collection of data. Although in 2014 this particular mining company ceased their activities, they left as a legacy several examples of best practice regarding community preparation. The mining company engaged local people from the outset, including the drafting of plans. As a result, to date there has been almost no conflict between local people and mining company. Local people consider that they have ownership of all the programs, and this has raised their sense of belonging and their feeling of power. One of the outstanding results of the discussions has been a decision to form a business entity in every village, abbreviated to Bumdeswhich stands for Badan Usaha Milik Desa. The presence of these local financial institutions in each village has reduced the bondage between people and merchants but not impaired their relationship. It has provided more opportunities to form new businesses. This research recommends underpinning community preparations before commencing the mining operations.The institutions act as channels of reciprocal communication of all parties, to enhance community involvement;over time these have improved the capacity and the capability of local people. Key words: Community preparation, mining, local financial institution, Bumdes Corresponding author: Lecturer, Department of Agricultural Extension, Faculty of Agriculture, QR code University of HaluOleo Kampus Hijau Bumi Tri Dharma Andounohu – Kendari- Indonesia, 93232 Email: [email protected] Please cite this article in press Yani Taufik., Community Preparation of People on the Frontier in the Facing of Mining Operations, Indo Am. J. P. Sci, 2018; 05(04). w w w . i a j p s . c o m Page 2392 IAJPS 2018, 05 (04), 2392-2404 Yani Taufik ISSN 2349-7750 INTRODUCTION: the cause and came to believe that he had a voice and Many of the mining operations in Indonesia are that his voice could be heard. The baseline study located in remote areas where native people have used community discussion to obtain much of their lived for generations. Community preparation of information about the local people, their perspectives, people on the frontier has to date not been the focus their aspirations. of mining development in the archipelago. Until now, the stakeholders have been understood as two A multi-national mining company (Rio Tinto) carried institutions, the company and the various levels of out a baseline survey for one year involving well government. The dominance, both real and apparent versed scholars from both overseas and local means that the needs of the people are often universities. One of recommendations of the misconstrued, or even ignored. The local people must baseline study was establishing institutions in each be involved as part of the system; they are the third village and sub-district as channels of communication stakeholder. If the local people can be considered as between the company and the local people. They an institution, they can have a place at the table of could then use the institutions as vehicles to development. The theory underlying this premise is communicate with local people. Peoples whose not new, but its application in mining development vernacular order was egalitarian lacked the has only recently been attempted. institutional handles by which they could be governed. Those institutions would have to be Institutions are the incentive systems that structure provided [4]. human interaction, which can make predictable our dealings with each other every day in all kinds of The purpose of this paper is to examine the forms and shapes [1] ii). Any institution can be interdependence between the community preparation considered also as a system of behaviour governed by of the mining operation and the establishment of local (agreed-to) rules and norms which have adhered and financial institution (Bumdes) on the frontier. An widespread use in the society [2]: 12). It may be underlying premise is that baseline survey and formal and/or informal and can be variously creating a conduit of communication with local interpreted by different actors. Institutions are also people as a part of a broader process of community dynamic;they can be shaped and reshaped over time. preparation in the mining area on the frontier. The Local institutions may also be regarded as processes establishment of local financial institution is evidence of social negotiation rather than constant objects. of a good community preparation process. In addition, Chang and Evans (2006 [3]: 1) The community who are impacted by the activities of emphasized that institutions are the way of sharing the mining industry are far wider than just the expectations, taken-for-granted assumptions, residents who live in and around the mine site. This is accepted norms and routines of interaction that have due to many factors which are ancillary to the actual robust effects on shaping the motivations and mining operations; many people who are suppliers of behaviour of sets of interconnected social actors. a wide range of products required to support mining activities do not live on the mining site. Many of the In modern societies, institutions are fundamental to mine employees’ families live in the city. Many of economic change; they are usually embodied in the owners of land or other assets in the mining site authoritatively coordinated organizations with formal are living in the town, some distance away, but rules and the capacity to impose coercive sanctions, maintain their connections with the mine site [5]. The such as the government or the firms. In the case of formation of local institution in each village of the mining operations, both the mining companies and mining site in Routa is meant to reach aspirations of the government are institutions motivated by an people who do not live in the mining site but do have economic imperative, which each understands. They family connection with the village. both speak the same language, with an urban perspective. This is not the case for the traditional Members of the community are likely to have farmerson the frontier, who ekes out his existence, different perceptions about the mine, its activities and who sees himself as victim of the weather, powerless the mining industry in general. Community members as an individual. The challenge is to empower the also have different associations with the mine, its individual through institutional transformation. employees, local business people and traditional owners. Knowledge about the historical background, There is always a feeling of power when people unite culture and politics will assist mining companies in with a common cause... and it was through the understanding what the elements of the local baseline study that each subject interviewed found community are and determining the best way to w w w . i a j p s . c o m Page 2393 IAJPS 2018, 05 (04), 2392-2404 Yani Taufik ISSN 2349-7750 interact and engage in the social and economic (1965). In 1968, most of the private mining activities of the local people. companies had been merged under PT. Tambang Timah and PT Aneka Tambang. The Mineral Council of Australia (2005 cited in Brereton et al., 2005 [5]: 4) stated that a mining Furthermore, Ballard (2001: 13) [7] explained that in community is groups of people who live in the area 1967, Freeport Sulphur signed their first contract with affected by mining activities. The term ‘stakeholder’ the Indonesian government to mine copper in West is also commonly used to refer to parties who have Papua. Contracts with foreign mining companies any kind of connection to mining activities. followed, with several in the period between the Stakeholders can be groups or representative(s) of a years 1968-1971, including INCO which opened a group who are concerned and influence decisions in nickel mine in Soroako - South Sulawesi (now taken mining activities. Around 60% of mining locations in over by Vale from Brazil). In 1991, Indonesian Australia are on Aboriginal land and are often close government issued new fiscal regulations and to settlements of indigenous people. The government incentives to foreign investment which encouraged must pay special attention to preserve cultural multi-national companies such as Freeport and heritage and the traditional land of the local people. Newmont. Freeport found gold in Irian Jaya (now Mining companies there have a legal responsibility to Papua) and so did Newmont in Batu Hijau on the allocate funding as their corporate social island of Sumbawa but the economic crisis in 1997- responsibility to repair any environmental damage 1998 brought significantly reduced investment in the and support a range of programs to improve people’s mining sector. During the New Order era, livelihoods. government paid little attention to public need or interest in many mining areas in Indonesia. There METHOD: were many conflicts between local people and mining This study was conducted for a year in 2011-2012 in companies which received support from the the sub-district of Routa using ethnographic methods government; some stood out such as in Irian Jaya and to collect qualitative data.