The understanding of companies nowadays changes overtime since the
development of people’s mind set. The companies nowadays are considered
as the organization and the formation of the organization is depending
on the collaborative decision making and the share of the similar values
among the member of the organization. The capital is no longer as the
prior parameter in forming an organization. Further, the understanding
of the collaborative decision making become the main point in developing
the sustainability of an organization. In line with the statement above,
Van Riel (2007: 198) explained broadly that the function of an
organization is developing the communication to enhance the concern
among the stakeholders to gain the sustainability of the organization
itself. Further, he explained that communicating with the key
stakeholder is the main approach to experience the recommendations that
leads to the communication climates and give its impact to the
‘organizational climate’. The organizational climate will influence the
major cycle in an organization. However, in reality the relation between
companies and stakeholders, sometimes, bases on the sense of financial
benefit from the companies. Most of the times the ‘relation’ is built on
the basis of certain ideology implied that could increase the benefit of
the companies. The main goal of the companies in practicing certain
ideology is more or less in gaining the control towards certain
strategic aspect, such as finance, market and power. The capitalism
exists and embedded within the soul of the organization in which the
impact will be seen on the vision, mission and the business cycle of the
companies. Capitalism is intended to control the corporation by applying
its authorities to conduct the interaction within and outside the
companies.
Stanley Deetz via Little John (2014: 390) explained that the companies
have communal responsibility by applying the democracy system in dealing
with the stakeholders. Deetz believes that an organization is created
based on the same vision and mission from each stakeholder. There is no
significant distinction between the internal and external stakeholders.
Based on his argument, a company is considered as an organization in
which the stakeholders put their willingness and collaboration to
achieve the main goal. Further, Deetz emphasizes his argument by stating
that a company should basis on the trust value in which each of the
members could contribute and build their sense of belonging toward the
company. A company is considered as a community in which the main asset
in the company is human resource and the stakeholders. By obviously
applied the funding capital as the most important asset gives the
obvious portray that the company is a predator and machine in creating
the profit for the owners. The basic idea of community is make sense of
what they are doing as the main point to discuss that as an
organization, a company should be able to deliver and transfer the
vision and mission, especially related to the expectation of the company
itself. By spreading those understanding, the stakeholder will be
presented sufficient information to give the value accordingly.
This research will broadly discuss the case in PT Timah Indonesia. This
company has become the prior company that contribute the country’s
incomes for decades. As the oldest mining industry in Indonesia , PT
Timah has exported most of the tin all over the world. PT Timah
Indonesia is located in Bangka, Sumatra , Indonesia. The mining
industry, at the beginning, was founded during the dutch colonization.
The name of PT Timah chnages overtime , such as Bangka Tin Winning
Bedrijft (BTW), Gemeenschaappelijke Mijnbouw Maatschaappij Billiton
(GMB), Singkep TIN Exploitatie Maatschappij (SITEM) and in 1976 the
company officially chnaged their mname become PT Timah Indonesia and
listed the nae in Stock Exchange by the year of 1995. Since then PT
Timah Indonesia developed its oprational area broader and contribute the
significant income for the country. The operational area of the tin
mining covered both inland and offshore around the Bangka Island.
As a mining industry, PT Timah exploits the raw material from the nature
and it will give the impact on the neighborhood and the stakeholders
around the company site. The recent news coverage about the mining
activities are broadcasted actively from 2015 up to 2017. As the first
news coverage on the mining activities taken from Tempo.co on 12 October
2015 explaining that the offshore activities of PT Timah Indonesia
destroyed the major area of the coral reefs along the Bangka and
Belitung Islands. There are 41 spot of coral reefs ecosuystem that 31 of
them destroyed because of the mining activities. In this article also
covered the illegal mining done by the local people as the side impact
activities from PT Timah Indonesia. The main cause of the destruction is
the silt along the beach and deep down the sea. Instead of dealing with
the water rehabilitation, PT Timah Indonesia put their accusation to the
local people that conduct the illegal mining. There is clear bsituation
that PT Timah Indonesia is not conducting the proper communication
process with the local people by preventing the illegal mining and the
environmental destruction.
In line with the previous news coverage, Bangka Pos on 10 April 2017
elaborate the destruction along Bangka and Belitung seashores. In the
article explained the impact of the tin mining in those are , such as
the environmental destruction will greatly impact the ecosystem of the
sea and the silt become the obstacle for the local people to earn for
living. The major local people work as fishermen to earn for living. By
the continuous environmental destruction will give the impact to the
fishermen in the future that they would not be able to fish around the
Bangka Belitung Islands. As te consequences from this, the local people
will start to conduct the illegal mining to live. They search for the
tin alongside the sea shore and around the Bangka and Belitung Island.
The consequences from the mining give a huge changes on the local people
and the environment. As a further news coverage, VOAIndonesia.com on 17
october 2017 covered the phenomena from the local people. The local
people concern the intensive activities of PT Timah Indonesia and the
silt around the islands. The local people work as fishermen concern that
they result of fishing reduce in number comparing to the previoys years.
They do concern in the future they have to change their way of living.
In the article, Walhi as one of the local Non Govermental Organization (
NGO) put their effort to put the awareness on the local and central
Government , in this case the President of Indonesia Joko Widodo, to
conduct the environmental aduting before everythig getting worst for
both the local people and the environment. Walhi , in this case, urge
the givernment to propose the alternative ways in conducting economic
activities other than tin mining.
In line with the news coverage above, the research journal from Himawan,
Wahyudi (2017) explained the potential allocation of post tin mining in
Konlong , Bangka Island. The point of view of socio ecological system
will give the new social system for the people. The tourism and water
source for agriculture and industry become the main suggestion for the
condition in Bangka Island nowadays. In line with the research above,
another journal Putra, H.F(2017) explaining that the reclamation
conducted by PT Timah Indonesia as the post mining rehabilitation does
not able to restore the natural function of the land in Bangka Island.
The main factor that influence the reclamation is that the reclamation
itself need long term rehabilitation process to restore the natural
function in the Bangka Island. As an additional, Ibrahim (2016) finds
that the tin mining is the refection of the Indonesia as a country. He
stated that the tin mining environmental and social destruction reflect
the collapse of the State Power. It reflects the dignity of Indonesia as
a country through its method in solving the problems. Broader view will
be taken as the failure of the central government in managing the local
government in conducting the mining.
The complex condition in the Bangka - Belitung Island is influenced by
several contexts related to PT Timah Indonesia mining practices. The
historical context that considering PT Timah has been developing the
mining practices since the Dutch colonization and the politics and
economics policy overtime up to now will affect the management and
mangerial function in the company especially in maintaining the
communication with the stakeholders. As the explanation above , the
corpotrate capitalism is applied in the mining practices as since the
very beginning ,Pt Timah aimed to gain the profit share to contribute to
the country. The company in its website is announcing the numbers of
shares they get along the years. The share numbers approched to7.447.753.454 as the total shares in the stock market (
www.timah.com/2014). The range of the oprational area aproximately
512.369 ha up to this year. As the company developed, they create the
sub company to intensified the operation and profit. From the cases
above, PT Timah has an important moral responsibilities toward the
environment and the stakeholders in restoring the nature function in the
Bangka Beliting Island. The Responsibilities are no longer on the local
scale but more on the bigger scale, that is the state level
responsibilities. The central government has higher moral
responsibilities to save this company as a reflection of good management
and state dignity. Based on the identification above, the formulation of
problems could be composed as to what extend the Corporate Capitalism
Practices applied by PT Timah Indonesia based on the mining practices in
Bangka Belitung Island. As similar to any other critical research, the
main purpose of the research is to reveal the application and the
implication of the mining practices by PT Timah Indonesia through
mapping and role of the stakeholders. As a result, the objective of
research will be focused on to reveal the causes, situation and
condition of PT Timah Indonesia trigger the company to apply the
corporate capitalism as the regulation power.