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Public Relations Planning Strategies in
Implementation of Community Development
Programs
A Case Study of PT. Freeport Indonesia and PT.
Total Exploration and Production Indonesie
     Rizaldi Parani
     Universitas Pelita Harapan
Background
Indonesian Law No. 40/2007 on Limited
Corporations, article 74:
  Corporations in the business of, or related
   to, natural resources have the obligation
   to implement social and environmental
   responsibility.
  A corporation that does not implement its
   obligation as mentioned in point (1) is
   given sanctions based on legislations.
Success indicators of CSR
progams
 Stakeholders   participation ( planning,
  implemantation, monitoring, and
  evaluation )
 Community self-sufficiency
 Sustainability
Need to know
 Corporations   need to build good relations
  with the stakeholders and recognize the
  characteristics of environment
 The role of PR practicioners in every
  corporations are very important,
  particularly for oil and mining companies
 There are 250 oil corporations in Indonesia
  and 59 begun production and 384
  corporations in mining
Some cases that PR practicioners are
failed to recognize the enviroment

  Freeport :
   July-august 2011 : 8 cases of violence
     ( gunshot ) resulting 25 deaths.
   September 2011 – Up to now : the strikes
     of Freeport employees, demanding for
     better working condition and higher
     payment
   Mid October 2011 : Pipeline sabotage at
     Freeport
Problem statement
   The role of PR practicioners in most oil and
    mining corporations is at the forefront in their
    relations with the communities
   PR practicioners have to formulated
    community development progams by
    recognizings the characteristic of the social
    environment of the communities
   How are the strategies of oil and mining
    corporations PR practitioners in implementing
    communities development progams ?
Literature review
   Public relations according to Long and Hazelton is a
    communication function of management through which
    organization adapt to, alter, or to maintain their environment for
    the purpose of achieving organization goals.
   According to White and Mazur (1995) PR practitioners require skills
    in social analysis as well as realistic knowledge of business
    operations.
   The skills of PR practitioners in analysing the physical culture and
    social environments of communities are very important for the
    corporations in order to create mutual relations with the
    corporations.
   Community developments progams have to consider the social
    and cultural characteristics of surrounding commumities in order to
    build good relationship with the stakeholder.
 Community    development is a form of skill
  and capability improvement done by the
  corporation which can create a strong
  social capital.
 According to Coleman all social relations
  and social structure facilitate same form
  of social capital : actors established
  relations purposefully and continue them
  when they continue to provide benefits.
   In order to develop a good progam planning
    strategy, PR practicioners need to follow the
    steps ( Cutlip, Center and Broom ) : Defining
    problem, planning and programming, taking
    action and communicating, evaluating.
   In the process of understanding the
    community, PR practicioners must follow
    some approaches: consultation, scanning the
    enviroment, collaboration, and negotation.
Research method
   Research approach : qualitative
   Research method : descriptive ( case study )
   Units of analysis : PT Freeport Indonesia and
    Total Exploration and Production Indonesie
   Case                 : Planning strategy of
    community development programs
   Type of data        : Primary (depth interview)
    and secondary (relevants articles and
    literatures)
Finding and Discussion
   PT FI
   community development programs formally
    started in 1998 in the cooperations with
    LPMAK, a representative of local goverment
    and Papuan informal leaders.
   Focus of the progam in the economic sectors
    by developing small and middle scales
    enterprises perform by the social outreach
    and local development body ( SLD ) of PT FI in
    cooperation with Bandung Techlonogy
    Institute and Semarang State Polytechnics.
 The   objective of the progams are to
  minimize the wellfare gap between locals
  and newcomers, and to increase the
  wellfare through education and also
  provide more skills in entrepreneurship.
 The outcome : the programs are not
  succesfully implemented because of the
  lack of cultural and social understanding,
  and lack of transparency in budget
  utilizations.
   TEPI
   Community development program established in 2008 in
    the cooperations with BP Migas, local goverment bodies,
    local police, as well as military.
   Focus of the development programs is in community
    empowerment by giving a certified welding skills training.
   The objective of program is to fulfill the needs of skilled
    welders for pipes used in drilling.
   This program runs in the cooperations with Bandung
    Technology Institute as a certifying body.
   The outcome : received positive responses not only from
    the local community people but also from the media.
   The key success point of TEPI is because they follows
    the comprehensive approach such as consultation
    and scanning the environment with the local
    community people in order to understand about the
    characteristics of the community as well as the
    needs.
   As TEPI is monitored by BP Migas, it has excellent
    relationship with all the stakeholders not only in the
    implemantation but also in coordination.
   TEPI also have a positive relations with the local
    media and make all the programs reported and
    monitored very well.
   This can stimulated positive participation from the
    stake holders and build the trust between them.
 On   the other hand PT FI has failed
  scanning the environment in order to
  identify the needs the local people and
  PT FI could not satisfy their stakeholders.
 Although PT FI has build good
  collaboration with community groups, PT
  FI still has to face less participation and
  cooperations.
conclusion
   The community development progam strategies
    implemented by PR practitioners from PTFI and TEPI
    are comprised of similar stages, and are equally
    comprehensive.
   However the formulation and implementation, from
    the initial process to the end result, of both
    corporations shows differences.
   The two corporations face different social and
    enviromental characteristics
   Involment of surrounding communities and
    stakeholders to participate in all activities is highly
    important and PR practitioners need to involve the
    participation of stakeholders and gain support from
    the media.
 PR  practitioners need to perform
  consultation to understand the needs and
  issues, collaborating with all stakeholders
  and negotiate in order to minimise the
  conflicts.
 PR practitioners must build mutual benefit
  between the corporations and the
  community members

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Session 4, Parani

  • 1. Public Relations Planning Strategies in Implementation of Community Development Programs A Case Study of PT. Freeport Indonesia and PT. Total Exploration and Production Indonesie Rizaldi Parani Universitas Pelita Harapan
  • 2. Background Indonesian Law No. 40/2007 on Limited Corporations, article 74:  Corporations in the business of, or related to, natural resources have the obligation to implement social and environmental responsibility.  A corporation that does not implement its obligation as mentioned in point (1) is given sanctions based on legislations.
  • 3.
  • 4. Success indicators of CSR progams  Stakeholders participation ( planning, implemantation, monitoring, and evaluation )  Community self-sufficiency  Sustainability
  • 5. Need to know  Corporations need to build good relations with the stakeholders and recognize the characteristics of environment  The role of PR practicioners in every corporations are very important, particularly for oil and mining companies  There are 250 oil corporations in Indonesia and 59 begun production and 384 corporations in mining
  • 6. Some cases that PR practicioners are failed to recognize the enviroment Freeport :  July-august 2011 : 8 cases of violence ( gunshot ) resulting 25 deaths.  September 2011 – Up to now : the strikes of Freeport employees, demanding for better working condition and higher payment  Mid October 2011 : Pipeline sabotage at Freeport
  • 7. Problem statement  The role of PR practicioners in most oil and mining corporations is at the forefront in their relations with the communities  PR practicioners have to formulated community development progams by recognizings the characteristic of the social environment of the communities  How are the strategies of oil and mining corporations PR practitioners in implementing communities development progams ?
  • 8. Literature review  Public relations according to Long and Hazelton is a communication function of management through which organization adapt to, alter, or to maintain their environment for the purpose of achieving organization goals.  According to White and Mazur (1995) PR practitioners require skills in social analysis as well as realistic knowledge of business operations.  The skills of PR practitioners in analysing the physical culture and social environments of communities are very important for the corporations in order to create mutual relations with the corporations.  Community developments progams have to consider the social and cultural characteristics of surrounding commumities in order to build good relationship with the stakeholder.
  • 9.  Community development is a form of skill and capability improvement done by the corporation which can create a strong social capital.  According to Coleman all social relations and social structure facilitate same form of social capital : actors established relations purposefully and continue them when they continue to provide benefits.
  • 10. In order to develop a good progam planning strategy, PR practicioners need to follow the steps ( Cutlip, Center and Broom ) : Defining problem, planning and programming, taking action and communicating, evaluating.  In the process of understanding the community, PR practicioners must follow some approaches: consultation, scanning the enviroment, collaboration, and negotation.
  • 11. Research method  Research approach : qualitative  Research method : descriptive ( case study )  Units of analysis : PT Freeport Indonesia and Total Exploration and Production Indonesie  Case : Planning strategy of community development programs  Type of data : Primary (depth interview) and secondary (relevants articles and literatures)
  • 12. Finding and Discussion  PT FI  community development programs formally started in 1998 in the cooperations with LPMAK, a representative of local goverment and Papuan informal leaders.  Focus of the progam in the economic sectors by developing small and middle scales enterprises perform by the social outreach and local development body ( SLD ) of PT FI in cooperation with Bandung Techlonogy Institute and Semarang State Polytechnics.
  • 13.  The objective of the progams are to minimize the wellfare gap between locals and newcomers, and to increase the wellfare through education and also provide more skills in entrepreneurship.  The outcome : the programs are not succesfully implemented because of the lack of cultural and social understanding, and lack of transparency in budget utilizations.
  • 14. TEPI  Community development program established in 2008 in the cooperations with BP Migas, local goverment bodies, local police, as well as military.  Focus of the development programs is in community empowerment by giving a certified welding skills training.  The objective of program is to fulfill the needs of skilled welders for pipes used in drilling.  This program runs in the cooperations with Bandung Technology Institute as a certifying body.  The outcome : received positive responses not only from the local community people but also from the media.
  • 15. The key success point of TEPI is because they follows the comprehensive approach such as consultation and scanning the environment with the local community people in order to understand about the characteristics of the community as well as the needs.  As TEPI is monitored by BP Migas, it has excellent relationship with all the stakeholders not only in the implemantation but also in coordination.  TEPI also have a positive relations with the local media and make all the programs reported and monitored very well.  This can stimulated positive participation from the stake holders and build the trust between them.
  • 16.  On the other hand PT FI has failed scanning the environment in order to identify the needs the local people and PT FI could not satisfy their stakeholders.  Although PT FI has build good collaboration with community groups, PT FI still has to face less participation and cooperations.
  • 17. conclusion  The community development progam strategies implemented by PR practitioners from PTFI and TEPI are comprised of similar stages, and are equally comprehensive.  However the formulation and implementation, from the initial process to the end result, of both corporations shows differences.  The two corporations face different social and enviromental characteristics  Involment of surrounding communities and stakeholders to participate in all activities is highly important and PR practitioners need to involve the participation of stakeholders and gain support from the media.
  • 18.  PR practitioners need to perform consultation to understand the needs and issues, collaborating with all stakeholders and negotiate in order to minimise the conflicts.  PR practitioners must build mutual benefit between the corporations and the community members