Responsible Corporate Leadership
In 2006, there was the biggest mud volcano on Indonesia which was affected by the gas well drilled by PT Lapindo Brantas. According to Lapindo Brantas, Inc., the company focuses on oil and gas exploration and production in Indonesia, operating under a Production Sharing Contract with the Government of Indonesia in an area known as the Brantas Block in East Java.
In accordance with Hastuti, H. (n.d.), the mud flow caused sixteen villages and three sub-districts that included factories and rice fields which make these have been closed. It is also be the reason that make thousands people lost their jobs and houses plus, the transportation routes were distracted which caused the traffic jams. Therefore, numbers of refugees, unemployed, abandoned children, prostitution and education stuck are risen up.
As said by Lapindo Brantas, Inc, “Lapindo Brantas lives and thrives together with the community in its operation areas. Through building mutually beneficial relationships with the community, Lapindo Brantas hopes to provide communities with a better quality of life”. Personally, it is quite conflicting from what the company has stated because it still has hundreds of people who suffered from the Lapindo Mudflow in East Java. Even though, it has been almost seven years but these people have not received compensation from this disaster. Moreover, Lapindo claimed that it was not the company’s fault, they blamed on an earthquake in Yogyakarta where is far away from hundreds kilometers. One victim said she no longer believed that the company and the government would keep their promises since 2011. However, Lapindo paid Rp 3 trillion (US$ 306 million) to victims in early 2013. (Harsaputra, I., 2013)
In my point of view, the company was missing of socialization to the community due to the gas and exploration area, lacking of bewaring to plan and analyze of dealing with the risks that may happen in drilling area. People who live in this area are all suffering for this disaster, the mud is such a burden to irrigation channel and drainage, huge impact on drinking water pipes because of the toxic, the ecosystem and agriculture industry were affected by the disposal, many victims got lung problem and some of them died from poor health. From these problems, it has demonstrated that Lapindo Brantas was still missing some component of Corporate Social Responsibility which includes four levels: Economic, Legal, Ethical and Philanthropy.
According to Kursh, S., Lant, T., Majeske, K., Olver, J., & Plant, R. (2012, p.6), they stated that the company must execute its business activities in Ethical and Philanthropy is the least important priority. From this situation, I think Lapindo Brantas took long time to be in charge for what happened in East Java area, they could have done researches more thoroughly about the gas exploration, should have educated appropriate training for their technical employees, and should have been...