Background of the problem
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.