The document discusses community development strategies of PT Freeport Indonesia and PT Total Exploration and Production Indonesie. It finds that while both companies implemented comprehensive programs, PT Total saw more success by thoroughly consulting communities, understanding their needs, and gaining stakeholder participation and media support, while PT Freeport failed to properly analyze the social environment. The key to effective strategies is involving stakeholders, addressing community needs, and building mutual benefit between corporations and communities.

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.

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