CSR Implementation Challenges PTPN IV

Oct 13, 2025 by thesweetdesigns.com 3 views

Introduction

Corporate Social Responsibility (CSR) has become an integral part of the business world, including in Indonesia. This is reflected in Law Number 19 of 2003 concerning BUMN and Law Number 40 of 2007 concerning Limited Liability Companies, which emphasizes the importance of corporate social responsibility. The more specific rule regarding the implementation of CSR, especially regarding the partnership and program of environmental development, is contained in the Decree of the Minister of BUMN Number: Kep.236/MBU/2003. This rule provides a clear framework for State-Owned Enterprises (SOEs) in running CSR programs.

As a State-Owned Enterprise (BUMN), PTPN IV has a dual role, which is running a commercial business and contributes to national development. In this context, CSR is an important instrument to fulfill PTPN IV's social obligations to the community around its operating area. This study discussed the implementation of PTPN IV CSR on the community in the Dolok Ilir Garden Unit, Simalungun Regency. This study aims to analyze CSR arrangements in the SOE environment, CSR implementation in the field, and its impact on the community.

Methodology

This study uses a normative juridical method, by reviewing statutory regulations, related documents, and conducting in-depth interviews with stakeholders. The results showed that CSR regulations in the SOE environment, although it had been stated in the Ministerial Decree, still had several weaknesses. The force of the regulation has not been accompanied by strict sanctions, so that its implementation in the field is still not optimal.

CSR Implementation Challenges PTPN IV

One of the challenges faced by PTPN IV in the implementation of CSR is its nature that is still chaotic compared to philanthropic. That is, PTPN IV is more focused on direct and momentary assistance, such as food or cash assistance, without building a sustainable program to improve the welfare of the community.

In addition, the impact of CSR which is not significant is also a problem. CSR implementation has not been able to have a real and sustainable impact on the community in PTPN IV. This is caused by several factors, such as:

Lack of Community Involvement in the Planning and Implementation of CSR Programs

This makes the CSR program less targeted and not in accordance with the needs of the community.

Lack of Evaluation and Monitoring of CSR Programs

This makes it difficult for PTPN IV to find out the effectiveness of the CSR program that has been run.

Lack of Synergy between CSR Programs and Local Government Development Programs

This resulted in the CSR program being fragmented and less optimal in achieving its goals.

Opportunities to Increase the Implementation of PTPN IV CSR

Despite facing several challenges, the implementation of CSR at PTPN IV has great potential to provide real benefits for the community. For this reason, PTPN IV needs:

Improving the Quality of CSR Implementation

With a focus on programs that are sustainable and based on community needs. PTPN IV can involve the community in planning and implementing programs, and building synergy with local government development programs.

Increasing Transparency and Accountability of CSR Programs

By conducting periodic evaluations and monitoring. This will help PTPN IV to find out the effectiveness of the program and improve its quality.

Building Partnerships with Various Stakeholders

To strengthen the CSR program. This can be done by involving community organizations, non-governmental organizations, and academics in the planning and implementation of CSR programs.

Conclusion

With the right commitment and strategy, PTPN IV can make CSR an effective instrument to improve the welfare of the community around its operating area. Sustainable CSR implementation and positive impact will bring benefits to PTPN IV itself, by improving the company's image and building good relations with the community.

Recommendations

Based on the findings of this study, the following recommendations are made:

PTPN IV should improve the quality of CSR implementation by focusing on programs that are sustainable and based on community needs.
PTPN IV should increase transparency and accountability of CSR programs by conducting periodic evaluations and monitoring.
PTPN IV should build partnerships with various stakeholders to strengthen the CSR program.
The government should provide strict sanctions for non-compliance with CSR regulations to ensure that SOEs implement CSR programs optimally.

By implementing these recommendations, PTPN IV can make CSR an effective instrument to improve the welfare of the community around its operating area.

Introduction

Corporate Social Responsibility (CSR) has become an integral part of the business world, including in Indonesia. As a State-Owned Enterprise (BUMN), PTPN IV has a dual role, which is running a commercial business and contributes to national development. In this context, CSR is an important instrument to fulfill PTPN IV's social obligations to the community around its operating area. This article aims to provide answers to frequently asked questions (FAQs) about CSR implementation in PTPN IV.

Q: What is Corporate Social Responsibility (CSR)?

A: CSR is a business approach that aims to create long-term value for both the organization and society. It involves integrating social, environmental, and economic considerations into the organization's operations and decision-making processes.

Q: Why is CSR important for PTPN IV?

A: CSR is important for PTPN IV because it helps to fulfill the company's social obligations to the community around its operating area. It also helps to improve the company's image and build good relations with the community.

Q: What are the challenges faced by PTPN IV in implementing CSR?

A: Some of the challenges faced by PTPN IV in implementing CSR include:

Lack of community involvement in the planning and implementation of CSR programs
Lack of evaluation and monitoring of CSR programs
Lack of synergy between CSR programs and local government development programs

Q: How can PTPN IV improve the quality of CSR implementation?

A: PTPN IV can improve the quality of CSR implementation by:

Focusing on programs that are sustainable and based on community needs
Involving the community in planning and implementing programs
Building synergy with local government development programs

Q: What is the role of the government in ensuring that SOEs implement CSR programs optimally?

A: The government has a role in ensuring that SOEs implement CSR programs optimally by:

Providing strict sanctions for non-compliance with CSR regulations
Monitoring and evaluating CSR programs
Providing support and resources for CSR implementation

Q: How can PTPN IV increase transparency and accountability of CSR programs?

A: PTPN IV can increase transparency and accountability of CSR programs by:

Conducting periodic evaluations and monitoring
Providing regular reports on CSR programs and their impact
Engaging with stakeholders and the community to ensure that their needs and concerns are addressed

Q: What are the benefits of CSR implementation for PTPN IV?

A: The benefits of CSR implementation for PTPN IV include:

Improved company image and reputation
Better relations with the community
Increased employee engagement and motivation
Improved business performance and competitiveness

Conclusion

Corporate Social Responsibility (CSR) is an important instrument for PTPN IV to fulfill its social obligations to the community around its operating area. By understanding the challenges and opportunities of CSR implementation, PTPN IV can improve the quality of CSR implementation and achieve its goals. This article has provided answers to frequently asked questions (FAQs) about CSR implementation in PTPN IV, and we hope that it has been helpful in providing a better understanding of CSR and its importance for PTPN IV.