Partnership Scheme Analysis on Plasma Plantation as a Corporate Social Responsibility (CSR) Program in Oil Palm Plantation (Case Study in the Affiliated Company of PT. Astra Agro Lestari Tbk)

Abstract

A company cannot be separated from the social contract with the society in running its operations. The company is not only responsible to the shareholders, but they are also responsible to the stakeholders. Therefore, the company needs to look for a partnership scheme with all the stakeholders in order to contribute in the nation’s development, while improving its performance in order to maintain and even to develop into a company that can compete with other companies.Corporate Social Responsibility (CSR) is now no longer voluntary, but it is mandatory for every company in doing it’s social responsibility. Moreover, with the issuance of Law No. 40 of 2007 on Limited Liability Company (Company Law), companies are required to pay serious attention on their social responsibilities.The purpose of this study is to determine 1) The types of CSR conducted by PT. Agro Lestari Tbk, 2) The plasma partnership scheme in PT. Agro Lestari Tbk. The research method used in this study is descriptive qualitative method analysis. Data collection techniques are interviews, observation and documentation.The results of this study indicate that PT Astra Agro Lestari Tbk has run various CSR programs, including environmental management programs such as Astra Green Company, PROPER Environmental Performance Indicators, waste utilization, energy saving and biodiversity conservation. There are also employee benefits, security and safety programs, social programs in education, health and economy.One of the CSR in the economic sector that is being run is the  (Primary Cooperative Credit for Members) in accordance with the Regulation No. 26 / Permentan / OT.140 / 2/2007 Article 11. The company has been running the plantation program by forming a partnership with farmers around plantations who are affiliated in the cooperative farmers. Of the total 480 ha of land, the plasma plantation is divided into two cooperatives, the KSU Sumber Sejahtera with 292 ha of land for 202 farmers, and KSU Tamungku Indah with 188 ha for 176 farmers. The financing scheme in the plasma plantation commonly use bank financing, the company does not provide funds so the interest rate follow the prescribed rate. But in contrast, the plasma program applied by the affiliated companies of PT. AAL conduct its own financing with financial support from the company. This pattern seem to ease farmers because of the lower interest rates.

Keywords : Corporate Social Responsibility (CSR), Partnership