Improving Local Economic Institution

in Corporate Social Responsibility,Run on June 2010


Corporate social responsibility (Budimanta, 2002) is a commitment from corporations to create better quality of living with related stakeholders, especially civil society/community who live in surrounding area of the company. The CSR program should be conducted in and integrated with its business activities in a sustainable manner. This is emphasized by the fact that the company is not just a mere business entity but also a social entity. Accordingly, its presence affects and is affected by the surrounding environment.

One effort that could be done in building higher quality of relationships between companies and local communities is through the development of strategic partnerships and trust building. important step which can be related to the implementation of CSR is to improve the economy of surrounding communities through the development of small and medium enterprises (SMEs) located in the neighboring community. The role of companies in the development of SMEs can be shown by providing assistance to SMEs so that they can establish capacity building, financial support and strong marketing channels.

Based on research from the Ministry of Cooperatives and SMEs, together with the Central Bureau of Statistics in 2007, SMEs in Indonesia reached 99.98 percent of total business. SMEs contribute strongly to the providence of jobs in providing employment. In 2006, SMEs were able to absorb up to 85.4 million workers. The amount represents 96.18 percent of total labor force in Indonesia. We can conclude that SMEs depict the real sector of society that promotes independence. In the context of CSR, SME development can be seen as effort to realize the independence of the community in accordance with the goal of community empowerment programs that is being implemented. At the same time to assist the development of SMEs, corporate parties can also move forward the real economy sector in Indonesia. A good and well-planned SME development program is necessary so that direct benefits to the corporations can be provided, in order to reduce community dependence on the corporate parties concerned.

Based on the stated above, Indonesian Center for Sustainable Development (ICSD) initiated a training with the theme “Improving Local Economic Institution”, in order to increase the capacity of actors in terms of cognitive, affective, and psychomotor aspects of managing CSR/CD programs, especially with respect to development in local economic.



  1. Understanding of the urgency of local economic empowerment through the development of SMEs as part of corporate strategy in the CSR/CD program;
  2. Skills in designing programs to SME development through strategic partnerships in CSR / CD to create self-reliance and community empowerment;
  3. Knowledge of various forms of SME development in accordance with CSR/CD programs;
  4. Share experiences, both among participants and with resource persons regarding problems in the development of SMEs and the solution strategy.



  1. How to design SME development programs through strategic partnerships among stakeholders as part of CSR/CD
  2. Local economic empowerment through the development of SMEs as part of CSR /CD
  3. How to run CSR/CD practices through local economic empowerment
  4. Financial Support & Line Marketing
  5. Establishment Capacity Building of SMEs




  1. Adi Prasetijo, MSi; Executive Director of ICSD (Indonesia Center for Sustainable Development),
  2. Drs. M Baiquni, MA, P.hD; Lecturer of Gadjah Mada University and Head of Tourism Studies
  3. Drs. Amir Panzuri; Director of KKB (Klinik Konsultasi Bisnis) and Craftsmen Executives Union of APIKRI
  4. Drs Maskuri; Director of YP2SU and GEMI Union and Grameen Bank Applicator in Yogyakarta Region
  5. Ferri Iskandar, STP; Entreprenuer and Manager Online Store



Working units in CSR/Community Development/Community Relation from companies and stakeholders in the extractive industries and in general.


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