The Impact of Pupuk Kaltim's Creating Shared Value (CSV) program for Fishermen on Tanjung Limau Bontang

Abstract

70% of Bontang area is ocean. There are two large factories in Bontang, they are PT. Pupuk Kaltim (PKT) in Bontang Utara District and PT. Badak NGL in South Bontang District. Pupuk Kaltim's CSR implementation, since the operation of the factory from 1979 to 2015, is still charitable. Thus, the implementation of CSR does not have much impact on both the community and the company. Local people often protest the company by using environmental issues, namely the large number of dead fish caused by environmental pollution from PKT factory’s liquid waste. They sometimes close the ship's entry and exit lanes from the PKT's factory port. In 2016, PKT implemented the Creating Shared Value (CSV) program at Tanjung Limau. This program is a program for sharing the results of PKT CSR with local fishermen through lobster and grouper cultivation on Floating Net Cage (FNC). The aim is to identify the economic, social and natural impacts on Tanjung Limau fishermen groups who are members of the PKT CSV program. Data was collected from BMTFEC diaries from 2016 to 2018 through Focus Group Discussions (FGD), interviews, and questionnaires. The results show that the income of members of the fishing group ranges from IDR 2,000,000 per month, is more environmentally friendly, members of the fishing group increase, and they get access to new markets.

Keywords

• csv
• revenue sharing
• floating net cage (fnc)