Publications

In the last 10 years, many reports have appeared in the media, telling us that some extractive industry companies have had difficulties in dealing with local the communities surrounding their operations. Based on these reports, this is really a night mare conditions. This condition happened ranging from blockade to access of operation facility, stop of the company operations, looting of the housing compound, strikes by local the work force to seek jobs and pay increases, to insist company to pay an unrealistic and baseless cash compensation, etc. The company spends a lot of energy, time and money to deal with that condition with both community and local government.All of those inconveniences have not occurred independently. They have developed and become even worse from unclear paradigm, perception, framework, commitment and philosophy on how to do proper business. The parties involved in the business or the stakeholders are the company, government, the contractors of the company and the community. They are all jointly responsible for the nightmares that affect business sustainability.Are the nightmares stoppable? I would like to say yes they are.The strategic solution is REFORM of the existing regulations, commitment and paradigm related to the extractive business and to all kinds of business. The role and responsibility of government, company and community should be clearly defined to succeed the objective of having all parties in the extractive business grow together in harmony. The capacity and trust of all stakeholders as the means to ensure that the strategic solution could be achieved should be improved too.