Strengthening Local NGOs in Areas Where Extractive Industries Operate

Grantee: Institute for Research and Empowerment

The objective of the project was to enhance trust-building and cooperation among local government, nongovernmental organizations and extractive industries in Indonesia, by strengthening the capacity and credibility of NGOs as partners in corporate social responsibility (CSR) programs. The focus was on improving the ability of local NGOs to forge permanent partnerships with companies and local governments in CSR policy design and implementation.
The project was relevant, given the legal and fiscal requirements governing CSR, the degree of poverty in extractive areas, the lack of enforcement of CSR policies, and the lack of attention paid to civil society engagement and NGO involvement as direct benefits of CSR policies. However, the project risks and problems in terms of corporate and local government commitment were neither adequately identified nor addressed during the design and implementation phase.