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All Journal Indonesian Journal of Geography
Siska Damayanty
Department of Social Welfare, Faculty of Social and Political Science, Universitas Padjadjaran, Bandung, Indonesia
Earth & Planetary Sciences

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A Creating Shared Value Approach to Sustainability in Extractive Company Siska Damayanty; Dian Karinawati Imron; Erwinton Simatupang; Dedo Kevin Prayoga; Santoso Tri Raharjo; Risna Resnawaty
Indonesian Journal of Geography Vol 58, No 1 (2026): Indonesian Journal of Geography
Publisher : Faculty of Geography, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22146/ijg.107957

Abstract

Transitioning toward a sustainable company is no longer an option but a necessity for the business entity to be agile in responding to sustainability issues. This study examines how an oil and gas company developed a program within the framework of Creating Shared Value (CSV) by bridging the local community and the resources with the company’s value chain. This study was conducted through a case study of the collaborative partnership between PT Pertamina EP Pendopo Field, an oil and gas company, and Sukakarya Village, STL Ulu Terawang Subdistrict, South Sumatra, Indonesia. The results indicate that the company’s initiative lies in developing a CSV prototype program that utilizes areca nuts as a pipe corrosion inhibitor to support the local economy and community empowerment. The company learned to work together with the Kelompok Wanita Tani Melati (Women’s Smallholder Group) and the local community to establish local business clusters. Challenges persist in three key areas: the learning activities related to areca nut extract production, the capacity of local institutions to serve as effective coordinators, and the establishment of cooperative mechanisms between the company and the community. Institutionally, the company has learned to navigate the intersection of sustainability and community-level socioeconomic development by reframing operational challenges concerning local social issues.
Co-Authors Dedo Kevin Prayoga Dian Karinawati Imron Erwinton Simatupang Risna Resnawaty Santoso Tri Raharjo