Implementation of Corporate Social Responsibility PT Pertamina Patra Niaga IT Tanjung Wangi Through Integrated Farming Ketapang

Fajar Nursyamsi1, Chika Riyanti2, Angelica Kintani Sekar Rahina3

 

1,2,3 PT Pertamina Patra Niaga Integrated Terminal Tanjung Wangi, Indonesia Email: fajar_nursyamsi@pertamina.com1, chikarynti@gmail.com2, kintaniangelica@gmail.com3

 

 


Abstract: This study aims to explore the implementation of Corporate Social Responsibility (CSR) by PT Pertamina Patra Niaga Integrated Terminal Tanjung Wangi through the Ketapang integrated farming program. The program is designed to empower the local community by introducing sustainable integrated farming practices, which combine various agricultural activities such as crop cultivation, livestock, and fisheries in a mutually supportive ecosystem.The research methodology includes a qualitative approach with data collection techniques through in-depth interviews, observations, and document analysis. The results show that the Ketapang integrated farming program has had a positive impact on the community's well-being, including increased income, strengthened local capacity, and environmental preservation. The program also demonstrates how CSR implementation can align with the Sustainable Development Goals (SDGs), particularly in poverty alleviation, food security, and environmental sustainability. The conclusion of this study is that the CSR Integrated Farming Ketapang program by PT Pertamina Patra Niaga IT Tanjung Wangi is an effective CSR model in creating sustainable socio-economic impacts within the local community. Recommendations are made for the further development of this program, including expanding its reach and enhancing community participation in the planning and execution of activities.

 

Keywords: CSR, Community Empowerment, Integrated Farming.

 

 


INTRODUCTION

Corporate Social Responsibility (CSR) is a tangible action taken by companies to improve the welfare of the communities around their operational areas. Sudarsana (Kurniawan et al., 2023) stated that the implementation of CSR programs reflects a company’s commitment to ethical development and sustainable business practices, aiming to enhance the economic, social, and environmental quality for the community. Based on this statement, CSR programs must consider sustainability values that positively impact the lives of the communities surrounding the company (Oktina et al., 2020). such programs are designed to address the problems and potentials within the community, providing  a solution to village issues while simultaneously promoting village development to enhance community welfare (Putri et al., 2023).

In the implementation of CSR programs, multiple stakeholders are involved and interconnected. Saidi (Rosyida & Nasdian, 2011) defines stakeholders as parties or groups with a vested interest, whether directly or indirectly, in the existence or activities of a company, thus influencing and being influenced by the company. Based on this explanation, the stakeholders in the CSR program include the government, private sector, and the community. Through CSR, companies demonstrate their efforts to meet stakeholder interests and ensure the company's long-term sustainability (Susanto & Ardini, 2016). Therefore, the relationship between stakeholders and CSR implementation reflects a mutually influencing dynamic that can yield positive impacts for all parties involved.

The World Business Council for Sustainable Development (WBCSD) defines CSR as an agreement or commitment in business to contribute and engage in sustainable economic development (Santoso, 2011). Internationally, ISO 26000 serves as a comprehensive guide for companies to sustainably implement long-term CSR. In Indonesia, Corporate Social Responsibility (CSR) is legally mandated under Law No. 40 of 2007 regarding Limited Liability Companies, outlined in Chapter V, Article 74, which consists of four clauses (Novianda, 2019). This law, enacted in 2007, mandates that companies engaged in natural resource-related activities are obligated to conduct social and environmental responsibility, with funds allocated as part of the company's budget, considering fairness in its implementation (BARUS et al., 2022). In conducting their operations, companies may generate both positive and negative external impacts. Negative impacts created by companies are their responsibility to manage. In the social sphere, companies not only bear social responsibility to shareholders but also to stakeholders, the community, and the surrounding environment.

Many companies in Indonesia have begun to promote flagship programs while introducing innovations in their CSR initiatives. One such company is Pertamina Patra Niaga Integrated Terminal Tanjung Wangi, a subsidiary of the state-owned enterprise Pertamina (Persero), which is engaged in oil and gas distribution. Pertamina Patra Niaga Integrated Terminal Tanjung Wangi has introduced an innovative CSR program called Integrated Farming Ketapang, which integrates agricultural sub-sectors (plants, livestock, and fish) to increase land resource efficiency, productivity, independence, and the sustainable welfare of the community. This is achieved using environmentally friendly technologies such as hydraulic pumps, drip irrigation systems, and greenhouses with smart monitoring systems. The program also includes lobster cultivation and organic waste management through maggot farming activities


MATERIALS AND METHODS

This study employs a qualitative method with a descriptive approach. Qualitative research is considered naturalistic because the research is conducted in a natural setting (Sugiyono, 2017). The descriptive method is used to investigate the status of a group of people, an object, a set of conditions, a system of thought, or a class of events in the present, with the aim of providing a systematic, factual, and accurate description or portrayal of the facts, characteristics, and relationships among the phenomena being studied (Ψvergεrd et al., 2015). The objective of using a qualitative method with a descriptive approach in this study is to provide a detailed description of the empowerment activities carried out through the CSR program by Pertamina Patra Niaga IT Tanjung Wangi in Ketapang Village.

The data collection methods used in this study include observation, interviews, and documentation. Participant observation, often referred to as participatory observation, is the chosen method for this research. Unstructured interviews are used as the primary method for gathering data. The purpose of using a documentation approach is to enhance the accuracy and validity of the data or information obtained from documents found in the field. This study employs document analysis to collect and obtain data from individuals or organizations with a vested interest in the research topic. After data is collected through observation, interviews, and documentation, irrelevant data will be categorized and minimized. Subsequently, an analysis is conducted, and conclusions are drawn about the significance of behaviors in a specific context and the focus of the study.

This study uses the analysis model proposed by Miles and Huberman, which includes data reduction, data display, and conclusion drawing. This research approach is highly applicable in the context of CSR ideas. Corporate Social Responsibility (CSR), as defined by the World Business Council for Sustainable Development, refers to a company’s dedication to promoting sustainable economic growth by prioritizing the welfare of its workers, their families, the community, and society at large (Marnelly, 2012).

 

RESULTS AND DISCUSSION

The development of Integrated Farming Ketapang is based on the development of environmentally friendly and sustainable agricultural technology with the aim of, among others, eco- friendly educational tourism with the concept of voluntourism. This concept allows visitors to learn while contributing to the local community through voluntary activities as a community empowerment effort by involving the wider community in a participatory manner.

Figure 1. Organizational structure of the group

Integrated Farming Ketapang has been implemented since 2023 as one of the learning media for school-age children. The initiation of the Integrated Farming activity came from the desire of Local Hero, Tunggul Harwanto, who saw that the unproductive land near his house was not being utilized properly. Tunggul Harwanto, who has previously been active in the field of education, is looking for ways to create a more fun and explorative school environment. Together with Pertamina Patra Niaga Integrated Terminal Tanjung Wangi, Tunggul Harwanto created a technology-based Integrated Farming innovation that is not only a medium for learning and literacy tourism, but also a pilot project for agriculture based on environmentally friendly technology.

In 2023, Tanjung Wangi Integrated Terminal collaborated with PGRI Banyuwangi University to create an environmentally friendly technology model that is easily accessible to the community. Development is directed at Smart Greenhouse facilities, Waste Processing Facilities and Hydram Technology Installations. Gunung Remuk Hamlet, Ketapang Village, Kalipuro Sub-District has abundant potential in the agricultural and livestock sectors. However, on the land managed by Tunggul Harwanto, one of the obstacles faced is the difficulty in getting access to water. Right next to the farmland, there is a tributary of the Cangka River that the community of Gunung Remuk Hamlet wants to utilize but still has limitations on capital and equipment.

Collaboration between stakeholders between Tanjung Wangi Integrated Terminal, PGRI Banyuwangi University and the community created a social innovation that can be a solution to problems in Ketapang Village, especially in Gunung Remuk Hamlet. Electroless hydram technology is a water pump system that relies on hydrokinetic energy from water flow to operate, without the need for external electrical resources. The concept of developing hydram technology includes a simple design that uses the principle of the law of continuity and Bernoulli's principle to create pressure that pumps water to higher places. The main advantages of hydram technology without electricity include sustainability, as it does not require an external electricity supply which can be limited or difficult to access in some areas. In addition, these systems tend to have low operational costs and require little maintenance, as they do not involve complex electrical components. This technology can provide a sustainable water solution in remote or water crisis areas, helping to improve community access to clean water by efficiently utilizing local resources.

In the first quarter of 2024, Hydram Technology has been installed and can be used by the PELITA Group as a source of water for irrigation of corn fields, lobster ponds and hydroponics. The Hydram Technology used has been able to fill a water toren with a capacity of 2,400 L in a period of about 4 hours. The water that has been accommodated in the toren is then distributed according to the needs of each sector in Integrated Farming. After carrying out the installation, Tanjung Wangi Integrated Terminal together with PGRI Banyuwangi University conducted socialization and education related to the use and maintenance of Hydram Technology. Socialization and education are carried out as an effort to increase community capacity, so that it is hoped that this activity will be able to become a sustainable activity.

Figure 2. Hydram Integrated Farming Technology

The next activity actively carried out by the PELITA Group is agriculture. The farm consists of hydroponics, corn gardens and toga gardens (family medicinal plants). Each of these commodities is made in a zoning that has been managed systematically and has been categorized by commodity type. In addition to being a learning medium, the farm has produced an economic impact for the community because the harvest from each commodity is sold to the wider community. For example, harvested corn is sold as a supplementary food for animal feed and can also be an ingredient for rice mixture because it has a low sugar content. Other commodities such as vegetables, namely lettuce, kale and pakcoy are sold to the surrounding community as cooking ingredients, as well as toga which is utilized by the community for consumption on a household scale.


Figure 3. Integrated Farming Commodity Yields

Then for waste processing activities, it is divided into 2 (two) types of activities, namely organic and inorganic waste processing (Amelia et al., 2019). In the processing of organic waste, collaboration between stakeholders is carried out, namely involving community farmers who have animal waste with very high production every day (Wahyudiantik, 2013). The animal manure is processed to become organic fertilizer that can be used in agriculture (Ratriyanto et al., 2019). The background of this activity is the rampant people who still throw animal waste into the river so that it pollutes the environment and has a bad impact on public health. Furthermore, inorganic waste processing is carried out by creating products from inorganic waste that cannot be decomposed such as plastic.


Figure 4. Processing of Organic and Inorganic Waste

The success in program synergy is not only seen from the activities carried out, more than that the expectations in the form of an ideal to be achieved (well-being) are seen from the achievement of the Integrated Farming Ketapang program which won an award at the Environmental and Social Innovation Awards 2024 with the Social Innovation Category and received the title "Gold".

The synergy between group units of the Integrated farming ketapang, namely the Hydroponic Unit, Frozen Bakery & Snack Unit, Maggot & Fertilizer Unit, Waste Bank Unit, and Freshwater Lobster Unit produces social innovations that can have a significant impact on various aspects ranging from environment, economy, social and well-being, the following mapping results are in accordance with the sustainability compass (Atkisson, 2002) as follows:

 

Table 1. Sustainability Compass Mapping Results

Environment Aspect

Economy aspect

1.      Use of animal waste into fertilizer as much as 600/Kg per Month

2.      Inorganic waste utilization as much as

3.      25 kg per month

1.       Food Processed Turnover IDR 3,000,000/month

2.       Increased revenue of Hydroponic Unit IDR 1,000,000/month

3.       Increased       income       of                       crayfish       IDR 2,000,000/month

4.       Electricity usage savings of IDR 250,000/month with hydram technology innovation

Aspects of Well-being

Social Aspects

1.      Involvement of a vulnerable group of 15 dropout

children.

2.      Involvement of 20 economically vulnerable people.

3.      Involvement of 30 unemployed vulnerable youth groups.

1.       Capacity building of 5 members

2.       in crayfish farming

3.       Capacity building of 15 members

4.       Waste Bank in processing organic waste into maggots

5.       Increased capacity of 27 members to manage integrated farming into MSME products

6.       Capacity building of 5 members in hydroponic training

 

CONCLUSIONS

Based on the implementation of the Integrated Farming Ketapang CSR Program described earlier, the Corporate Social Responsibility (CSR) initiative by Pertamina Patra Niaga IT Tanjung Wangi in Ketapang Village goes beyond merely providing aid or resources. It prioritizes efforts to improve community welfare through empowerment activities. This highlights the success of the community empowerment approach within the CSR program, demonstrating a real and measurable impact.

Integrated Farming Ketapang is not only a manifestation of the company's commitment to implementing CSR practices, but also a source of new hope for the community. It fosters independence not only in one sector but across various areas of community enterprises. Initially designed to address the educational needs of school-aged children, Integrated Farming has now evolved into a learning platform for individuals from diverse professions. Continuous innovation has been key to increasing community productivity, benefiting agricultural, livestock, and small business groups (UMKM).

The Integrated Farming Ketapang program provides solutions to several community issues, including waste management, declining agricultural productivity, and unutilized livestock waste. These challenges are gradually being addressed through the program, marking the potential for sustainable community development.

 

 

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