Analyzing the Social License Index of the PT. Indonesia Asahan Aluminium Hydropower Plant in Toba Regency
https://doi.org/10.56225/jmsc.v3i3.355
Keywords:
Social License Index, Hydropower Plant, Stakeholder relationships, Corporate business sustainabilityAbstract
This study investigated the social license and stakeholder relationships of PT. Indonesia Asahan Aluminium (INALUM) in North Sumatra using the Social License Index (SLI). The SLI provides a systematic analysis of social licenses and offers insights into the company-stakeholder relationship, including factors affecting operational sustainability. This research was conducted in PT. INALUM industrial region in North Sumatra, focusing on the surrounding geographical area. The study population was comprised of individuals representing various aspects that were directly and indirectly involved in the company's operations. Data collection involved surveys and in-depth interviews with 54 informants from diverse backgrounds, including the private sector, local government officials, religious leaders, labor representatives, academics, and community members. Results from Business and Government perspectives indicate that PT. INALUM is perceived as a reliable partner that contributes positively to local economic development and social programs. However, the Civil Society Organization (CSO) perspective revealed persistent challenges in company-CSO interactions. This research emphasizes the importance of enhancing communication, engagement, and transparency in a company's relationship with CSOs. The study found that PT. INALUM's SLI level reached a satisfactory level in terms of gaining support and trust, with the SLI level reaching co-ownership. This indicates that the company is an integral community partner with solid support levels and close partnerships. In conclusion, PT. INALUM has established strong social support and trust among various stakeholders. Despite positive assessments of local economic development and social programs, challenges related to CSO interactions persist. To further strengthen support levels, improved communication, engagement, and transparency with CSOs are recommended.
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