The Importance of Co-opetition of Corporate Social Responsibility in the Palm Oil Industry in Indonesia

Abstract

The concept of Corporate Social Responsibility (CSR) first started from the enactment of Law No. 40 of 2007 on Limited Liability Company, in particular Article 74. Implementation of CSR in the Indonesian palm oil plantation industry has always been integrated into the industry standards as well as relevant government regulations. This article also analyzes the decisions of the constitutional court regarding CSR in the plantation industry. Despite fulfilling all the necessary requirements demanded by the market and regulatory bodies, the industry is still and always has been under attack by Non-Governmental Organizations (NGOs) and the general public. Therefore, this paper attempts to conceptualize the importance of further research in developing co-opetition strategy among competitors in the palm oil industry and between the industry players with the NGOs as part of the stakeholder management. This paper is written using the normative-juridical method with focus on legal research regarding on legal aspect on CSR in plantation industry.