<![CDATA[Indonesian State-Owned Enterprise Ministerial Regulation PER-1/MBU/03/2023 mandates a shift in corporate social and environmental responsibility (TJSL) from charitable philanthropy towards strategic, measurable, and accountable social investment. Practice at the site level shows the opposite. This study examines the gap between rules-in-form and rules-in-use in the governance of PG Krebet Baru’s TJSL programme in Krebet Village, Bululawang District, Malang Regency, using Elinor Ostrom’s Institutional Analysis and Development (IAD) framework. This qualitative case study gathered data through observation, in-depth interviews with selected informants, and document analysis, then verified the findings through source triangulation. The results indicate that the institutionalisation failure arises from a mutually reinforcing configuration of conditions: an institutional void at the regency level, where neither a dedicated local regulation nor a coordination forum reaching the company is in place; the economic dependence of residents on the mill; the limited authority and fiscal capacity of the village government; and the company’s command of financial and informational resources. That configuration produces a skewed action arena in which the company acts as the dominant actor, the village government is reduced to an administrative facilitator, and the regulatory function remains unfilled. Interaction is one-way and patron-client in character, and the resulting programmes are charitable, absorbing 82.47 per cent of the 2024 budget. The outcome is paradoxical: conflict is contained in the short term while dependency is likely to deepen over time.]]>
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