December 2022
159
Domination of Mining Companies in Improving the Community's
Economy
Noor Ain
Pascasarjana IAIN Palangka Raya, Email: [email protected] Abstract
Mining potential brings both positive and negative impacts. The positive impact is that the welfare of the community in mining areas in general seems to have increased because the dominant effect of the company's presence has been able to encourage and drive the community's economy. This study aims to find a form of hegemony carried out by mining entrepreneurs in the community to increase income. The method used is library research, in which the primary data is Antonio Gramsci's book, which discusses domination and hegemony that occur between social classes in a society, journals, and other relevant scientific writings.
The results of the study show that the form of dominance used by mining entrepreneurs improves the community's economy by advancing regional development, bringing regional and national economic benefits, supporting business opportunities, developing new infrastructure, securing jobs, opening remote areas, and expanding technological knowledge in mining communities. For example, every mining entrepreneur who conducts mining near residential areas will certainly bring changes to improve the regional economy.
Keywords: Domination, mining company, economy, community, Anthonio Gramsci
INTRODUCTION
Indonesia is a country rich in mineral resources, which include mining products (coal, oil, natural gas, and tin). In this era of globalization, every country builds its economy through industrial activities that process the country's natural resources. This is to compete with other countries and promote their economies. Therefore, many private companies process mining products for production.1
One sector contributing to the government's exchange rate, the majority of which is the mining sector, this sector contributed 36% of government revenue in 2008. The mining sector not only generates foreign exchange through tax revenues and transportation costs,2 but it can also accommodate a large number of workers, which has a positive effect on job creation. One of the most important commodities in the mining sector is coal, which contributed $2.57 trillion to government revenue in 2004 and increased to $8.7 trillion in
1 “Kompasiana, Positive and Negative Impacts of the Mining Industry in Indonesia,” accessed December 6, 2022, https://www.kompasiana.com/marinaikasari/5528d386f17e61780e8b457a/dampak-positif- dan-negatif-industri-pertambangan-di-indonesia.
2 “Geography. Com, 5 Roles of Coal in the Indonesian Economy,” accessed December 12, 2022, https://ilmugeografi.com/ilmu-social/peran-batubara-dalam-pereconomic-indonesia, accessed.
160 2007. Both domestic and export demand Mining is a strategic sector, and in resource-rich areas, mining is the backbone of regional income.3
Mining is essentially the process of converting natural resources into the real economic and social capital of a country. The resulting capital must be able to increase the country's qualitative value in forming an independent future, including transfers. The interaction of social, economic, and ecological factors must be taken into account so that the effects that occur are known as early as possible.4
Coal mining has several positive impacts. Some of these positive impacts are:
building roads and harbors to open watersheds. b. Source of national currency c. Sources of Regional Original Income (PAD) Another source of energy for society e. working group adaptation.5
The large investment in coal mining has not only positive but also negative effects on changes in the social, cultural, and economic structure of society, as well as on environmental quality. The negative effects of the social order in the community around the mining company can be shown by negative behavior and/or habits, such as gambling, drinking habits, and spending habits, among workers who can encourage changes in local communities to spend more or less. The Case With changes in the purchasing power of the local community, social turmoil arises, which in the end can lead to disharmony (social conflict) between members of a mining company. Another aspect that should not be ignored is the negative impact on environmental quality. It is undeniable that mining can affect environmental quality. The management of environmental damage caused by the activities of coal mining companies requires strict supervision by all stakeholders (companies, government, and the general public).6
Recognizing the huge negative potential of coal mining, it is the company's responsibility to minimize these negative impacts by preparing environmental impact analysis documents, distributing environmental management plans, and implementing environmental monitoring plans that include real events for residents around the mine so they don't only feel the negative effects, but also benefit from nearby mines. The concern of
3 Dedek Apriyanto and Rika Harini, “"IMPACT OF COAL MINING ACTIVITIES ON SOCIO-ECONOMIC CONDITIONS OF COMMUNITIES IN LOA IPUH DARAT VILLAGE, TENGGARONG, KUTAI KARTANEGARA,” n.d.
4 Fachruddin Azwari and Arini Rajab, “The Impact of Coal Mining on the Social and Economic Community in RT. 17,” Loa Duri Ulu Village, Loa Janan District, Kutai Kartanegara Regency 22, no. 1 (2021).
5 Jimmy N and K.. Rapiandi Isak Merang, “The Impact of Coal Mining on the Socio-Economic Life of People in Floating Village Tanjung Selor District, Bulungan Regency,” Journal of State Administration (JUAN) 8, no.
2 (2020).
6 Soil and water conservation Arsyad S, Soil and Water Conservation, Bogor press agricultural institute:
IPB, 2007).
161 coal mining companies is the development of corporate social responsibility, which can bring personal benefits to residents and improve the quality of life, for example by alleviating poverty by providing health services, education, scholarships, upgrading skills, and increasing purchasing activities. empowerment of communities around the mine by providing training so that communities around the mine can compete and help shape the infrastructure needed by the community, including clean water facilities.7
The presence of a mining company in the community is an example of participation and involvement in the improvement and development of community development. The company and the people around it are two components that influence each other. Where companies need residents more or less for the development of the company itself and vice versa, the community needs companies to improve the economy and development of community areas because of the existence of companies.8
Research on mining's role in improving the community's economy has been carried out a lot, including, according to Novianis, in his research on "Why do people develop gold mines in Jolong Koto Panjang, Sijunjun province?" This study discovered that mining activities not only benefit the community's economy but also have social consequences and help to restore agricultural land.9
Brian Ari Afriano discovered in his writing on the impact of mining in Kediri Regency that, in addition to improving the economy of mining communities, the activities carried out in mines can affect livelihoods, business opportunities, and employment. 10 Furthermore, Muhammad Idul Launuru's research on mining activities in West Seram District shows that mining communities have higher yields and fewer unemployed people.11
Various studies that have been conducted show that mining activities greatly affect the income of people who work for mining companies. This study aims to find forms of hegemony carried out by mining companies in the community to improve the economy.
METHOD
This research was conducted through observation and the collection of data available in the library, both in the form of books, written works such as journals and
7 Ferdricka Nggeboe, “Socio-Economic Impact of Coal Mining,” n.d.
8 Uyu Wahyudin, “‘ANALYSIS OF THE IMPACT OF COAL MINING COMPANIES ON SOCIO-ECONOMIC CONDITIONS OF COMMUNITIES,” n.d.
9 Novianis and Eka Vidya Putra, ““People’s Reasons for Exploiting a Gold Mine in Jorong Koto Panjang, Sijunjung Regency:",” Journal of Sociology and Education Studies 3, no. 1 (2020).
10 Brian Ari Afriano and Eko Budiyanto, “The Impact of Andesite and Urugan Mining (Case Study in Tiron Village, Banyakan District, Kediri Regency),” Swara Bhumi Journal 2, no. 2 (2021).
11 Muhammad Eid Launuru, “‘SOCIAL, CULTURAL AND ECONOMIC IMPACT OF COPPER MINING ACTIVITIES IN UHE VILLAGE IHA VILLAGE HUAMUAL DISTRICT, WEST DISTRICT OF SERAM’” 2, no. 2 (n.d.).
162 articles, and previous research related to the researcher's discussion. As a result, this study is classified as a type of research (library research) or what is known as library research.12 The implementation of this research was carried out in a structured manner, starting from data collection, data processing, and drawing conclusions to solve the problems studied in this study.
DISCUSSION AND FINDINGS
Antonio Gramsci's Theory of Hegemony
In the last century, many concepts of hegemony have emerged and various serious discussions have taken place, as well as research in philosophy, politics, sociology, literature, cultural studies, and other fields.13 Since John M. Cammet published his book Antonio Gramsci, the concept of hegemony has been widely accepted in European and North American studies, including The Origins of Italian Communism 1967, which used to be his dissertation at Columbia University, USA.14
Antonio Gramsci is a great intellectual who is considered to be the greatest thinker since Karl Marx. Gramsci's ideas have appeared in many articles and books published in mainstream media, such as PrisonNotes. Gramsci's ideas were illustrated in many of the articles that were published in mainstream media and books, including The Prison Notebook, Modern Prince, and other political writings; Prison Notebook Quotes; Prison Letters; Political Writing Quotes; and Culture Writing Quotes. Among all of Gramsci's ideas, hegemony is considered the central and original idea developed by Gramsci in his works and writings.15
This is the starting point of Gramsci's reflections on class intervention and its members exercising power over the class through coercion and persuasion. And hegemony does not refer to the relationship between power and power, but rather to the relationship between political and ideological leadership. According to Gramsci, hegemony is a series of victories achieved through a process of pure unanimity through the oppression of different social classes. such as through the institutions that exist in the community, which
12 N Norhilaliyah and M Muslimah, “Memahami Hakekat Penelitian Dalam Pandangan Sains Dan Al- Qur’an,” Proceedings … 1 (2021): 519–26, https://e-proceedings.iain- palangkaraya.ac.id/index.php/PICIS/article/view/811%0Ahttps://e-proceedings.iain-
palangkaraya.ac.id/index.php/PICIS/article/download/811/871.
13 M. Hidayah, A. T. S., Sardimi, S., & Muslimah, “Manusia, Alam Semesta Dan Kebutuhan.,” In Proceedings of Palangka Raya International and National Conference on Islamic Studies (PINCIS) 1, no. 1 (2021).
14 John M. Cammet, Antonio Gramsci and the Origins of Italian Communism (Stanford: Stanford University Press, 1997).
15 A Rahmatia, “A Study of Max Weber Thought on Its Relation to Work Purposes and Ethics in The Islamic Economics,” Jurnal Transformatif (Islamic Studies 3, no. 1 (2019): 19–41.
163 exclusively determine the original cognitive structure of society.16 Therefore, the intervention is primarily an effort to encourage the community to assess and see social problems in the affected environment.17
Hegemony refers to the ways in which certain elements can make their claims universal. According to Louis Althusser, the ideological state apparatus creates a false consciousness in society and prevents society from learning about exploitation and oppression, which allows processes such as state domination to take place. People agree with the actions of the state, even if they are against their interests, because of false consciousness. He called this process "hegemonization," which ensures the survival of the ruling class in the long run.18
According to Gramsci, there are three ways to form ideas: 1. Language, language is the main means of spreading certain global concepts, so it has a significant impact.19 The more languages that can be spoken and learned, the easier it is to spread ideology. 2. Public Opinion, public opinion is a unit. Although he is not systematic, he has quite strong coaxing abilities. Gramsci claims that popular culture and public opinion have emerged as important arenas in the struggle between ideology and ideology. 3. Factors, factors including belief systems, opinions, and tahayul all contribute to supporting hegemony, namely the power that keeps society together without violence. 20
In Gramsci's view, the characteristic of hegemony is the creation of exclusive groups through consensus, violating reason or frame of mind, ideals of life, culture and values, and common sense. From a dominant group to a minority group or from a strong group to a weak group, the entire intervention process is carried out by those in power. Gramsci defines "intervention" as a situation in which a historical group or groups of the ruling class use a combination of power and consensus to exercise social authority and leadership in a discriminatory class.21
Domination of Mining Companies in Improving the Community's Economy
16 M. (2021) Saputra, A. D., Rahmatia, A., & Muslimah, “How Far Are the Benefits of the Islamic Philanthropy and Social Entrepreneurship Movement?,” El-Qish: Journal of Islamic Economics 1, no. 1 (2021): 11–14.
17 Roger Simon, Gramsci’s Political Ideas, (INSIST, 2004).
18 Louis Althusser, “Ideology and Ideological State Apparatuses (Notes Towards An Investigation’’’” (in Slavoj Žižek, n.d.).
19 I. Afriana, N. R. K., Muslimah, M., & Qalyubi, “Peran Bahasa Dalam Teks–Teks Perkembangan Pemikiran Ekonomi Islam,” Jurnal Al-Qiyam, 2, no. 1 (2021): 140–48.
20 Nyoman Kutha, Literature and Cultural Studies (Fiction and Fact Representation) (Yogjakarta: Learning Library, n.d.).
21 Peter Barry, Beginning Theory, Comprehensive Introduction to Literary and Cultural Theory, Trans (Yogjakarta: Jalasustra, 2010).
164 The dominance of mining entrepreneurs in improving the community's economy has a positive impact on the community because it really helps the locals meet their daily needs. According to Gramsci's view, the dominance of mining entrepreneurs in solving social problems is referred to as "hegemony," where hegemonic practices occur through approaches of domination, approval, and intellectual moral leadership. Hegemony occurs when the dominant group succeeds in persuading the dominated group that the influence is natural. 22
This study discovered several forms of hegemony carried out by mining entrepreneurs in improving the economy in society, such as the Domination of Power, based on Gramsci's theory of hegemony. The form of dominance carried out by mining entrepreneurs in improving the community's economy with the large number of migrants who become employees of coal mining companies and local residents increases the willingness of communities around the mine to adapt to changes in social structure by opening shops near coal companies.
The presence of coal mining activities can take the form of: pioneering in the business world, promoting regional development, bringing regional and national economic benefits, supporting business opportunities, developing new infrastructure, securing jobs, opening remote areas, and expanding technological knowledge to the mining community.23
For example, every mining entrepreneur who conducts mining near residential areas will certainly bring changes to improve the regional economy. The same thing happened in the Meranda village of Loa Duri Ulu, in the RT range (17), where the majority of the population is employed in the coal mining industry, PT. Baidur Energy Hill. RT Community. 17 Not all work, but only a small number are unemployed; 90% are employed and 10% are unemployed. RT work. 17: In the village of Loa Duri Ulu, 60% of the population works for PT. Bukit Baiduri Energi, 20% as farmers and construction workers, and 10% for each shipyard. This condition shows that the people of Meranda Loa Duri Ulu Village are very dependent on coal mining in their area, so indirectly mining entrepreneurs can help people fulfill their daily lives.24
Of the 120 mines in Indonesia, the Indonesian mining company that has the largest contribution to non-tax state revenue (PNBP) is PT Kaltim Prima Coal, worth IDR 6.5
22 Helma Hidayati, “The Impact and Effect of Coal Mining on Society and the Environment in East Kalimantan,” n.d.
23Ibid.
24 Jimmy N and K.. Rapiandi Isak Merang, “The Impact of Coal Mining on the Socio-Economic Life of People in Floating Village,Tanjung Selor District, Bulungan Regency,” Journal of State Administration (JUAN) 8, no.
8 (2020).
165 trillion.25 By having a large mining company in Indonesia, the company certainly requires a large number of workers so that it can create jobs for the community. Of course, to be able to work at the company, reliable and competent human resources are needed,26 given the existence of regulations that must be met by people who want to work at the company. The path of domination, in which rules are used to govern society, is how entrepreneurs have exercised hegemony. This practice is consistent with Gramsci's idea that domination is hegemony. The capitalist economic system is social, where certain social groups can take action against society to follow the dominant group if the group has power or resources.
Mining companies have production targets that must be met, but these targets are not always met due to factors such as initial preparation for work, stopping before the break, preparing for work after the break, and stopping before it is time to go home.
Efforts made by the company to improve the welfare of the community, namely through social relations, are expected to strengthen good relations between residents and companies through assistance in the fields of religion, social, culture, youth, and sports.27 Community empowerment: in carrying out mining activities, the company will empower the surrounding community so that it can be expected to have a positive influence on company performance. Community service activities: the activities carried out are in the fields of natural disasters (assistance to disaster victims) and donations (funding assistance for unexpected matters). Infrastructure development: this activity is assistance in the framework of the construction, repair, and maintenance of public facilities and infrastructure needed by the community around the company area. Operational costs are the costs required for sending relief goods to the disaster location.28
Mining entrepreneurs have exercised hegemony through dominance by exploiting their income and dominating the local community. In the end, mining entrepreneurs have become the ruling class that has dominant power over the subordinate class.29 This practice is in accordance with Gramsci's view that the beginning of hegemony is domination. Certain
25 Detikcom, “Here Is a List of Mining Companies That Are the Largest PNPB Contributors,” accessed December 22, 2022, https://finance.detik.com/energi/d-4792409/ini- register-company-tambang- penyumbang-pnbp-terbesar, .
26 Hidayah, A. T. S., Sardimi, S., & Muslimah, “Manusia, Alam Semesta Dan Kebutuhan.”
27 C. D. Muslimah, M., Lestari, E. P., Hamidah, W., Jhufriyah, J., Fajar, R., Firmansyah, Y., ... & Darnita,
“Sinergitas Mahasiswa Dan Masyarakat Dalam Memberdayakan Permainan Voli Berbingkai Moderasi Beragama.,” Prosiding Konferensi Nasional Pengabdian Masyarakat, 2021, 131–41.
28 Andi Aditya Irawan, “Economic and Social Impacts of PT. Harum Tanito for the Community in Loa Tebu Village,” Tenggarong District, EJournal of Government Studies, 2013.
29 M Muslimah, “TOLERANSI DALAM KEHIDUPAN MULTIKULTUR DI SMP NEGERI 2 ARUT SELATAN.,” Jurnal Transformatif (Islamic Studies) 1, no. 2 (2017): 259–88.
166 social groups can take various actions against other groups, even being able to make other groups do something according to the wishes of the dominant group if the group has power.
Under Trade Regulation No. 5 of 1984, industry is an economic activity where raw materials, raw materials, semi-finished products, and/or finished products are processed into goods that have greater uses, including industrial planning and design. The goals of industrial development are: increasing the wealth and welfare of the nation in a fair and just manner by using finance, natural resources, and/or agricultural products while respecting the balance and sustainability of the environment; Gradually increasing economic growth and changing the economic structure to one that is better, more advanced, healthier, and more balanced to create a stronger and broader base for economic growth and offer added value, especially for industrial growth; improve skills and management, promote the creation of appropriate technology, and strengthen confidence in the capabilities of the national business community; namely, increasing community participation and the ability of economically vulnerable groups, including craftsmen, to participate in industrial development; expanding employment and business opportunities as well as equity and strengthening the role of industrial cooperatives.30
Article 74 (2) No. 40 of 2007 reads: "Companies that carry out their business in the field of mineral resources and/or are related to them are obliged to bear social responsibility." Similarly, in mineral and coal mines.UU No. 4 of 2009 in Article 3(5), i.e.,
"Increasing the income of the people of the region, region, and country as well as creating jobs to advance human welfare." Entering the company PT. Bukit Baiduri Energi in Loa Duri Ulu Village can create jobs for the place because the company's income can prosper the community through company control of mining activities and can also overcome the existing poverty rate.
CUNCLUSION
Mining entrepreneurs carry out a form of hegemony characterized by dominance and approval. First, agreement-based hegemony can be achieved through socialization and persuasive strategies. Second, hegemony in the form of dominance is exercised in Loa Duri Ulu Village, Merandai, by emphasizing the obligation of mining entrepreneurs' income to the economy's improvement.Third, intellectual and moral leadership hegemony, particularly among mining entrepreneurs who care about the community in order to alleviate their daily responsibilities.
30 J immy N and K.. Rapiandi Isak Merang, “The Impact of Coal Mining on the Socio-Economic Life of People in Floating Village, Tanjung Selor District, Bulungan Regency,” Journal of State Administration (JUAN) 8, no. 2 (2020).
167 The level of hegemony exercised by mining entrepreneurs over society can be equated with decadent hegemony. The relationship that exists between the community and mining entrepreneurs shows this phenomenon, but only a handful of people establish this relationship.
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