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Newmont Mining Corporation. - Enacting the corporation: an American mining firm in post-authoritarian Indonesia

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Newmont Mining Corporation. Enacting the corporation: an American mining firm in post-authoritarian Indonesia

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What are corporations, and to whom are they responsible? Anthropologist Marina Welker draws on two years of research at Newmont Mining Corporations Denver headquarters and its Batu Hijau copper and gold mine in Sumbawa, Indonesia, to address these questions.

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Enacting the Corporation The University of California Press gratefully - photo 1
Enacting the Corporation

The University of California Press gratefully acknowledges the support of the Hull Memorial Publication Fund of Cornell University, which provided funds toward the publication of this book.

Enacting the Corporation
An American Mining Firm in Post-Authoritarian Indonesia

Marina Welker

Picture 2

UNIVERSITY OF CALIFORNIA PRESS

Berkeley Los Angeles London

University of California Press, one of the most distinguished university presses in the United States, enriches lives around the world by advancing scholarship in the humanities, social sciences, and natural sciences. Its activities are supported by the UC Press Foundation and by philanthropic contributions from individuals and institutions. For more information, visit www.ucpress.edu.

University of California Press

Berkeley and Los Angeles, California

University of California Press, Ltd.

London, England

2014 by The Regents of the University of California

Library of Congress Cataloging-in-Publication Data

Welker, Marina, 1973, author.

Enacting the corporation : an American mining firm in post-authoritarian Indonesia / Marina Welker.

pages cm

Includes bibliographical references and index.

ISBN 978-0-520-28230-8 (cloth : alk. paper)

ISBN 978-0-520-28231-5 (pbk. : alk. paper)

ISBN 978-0-520-95795-4 (ebook)

1. Newmont Mining Corporation. 2. Newmont Nusa Tenggara, PT. 3. Mineral industriesSocial aspectsIndonesiaSumbawa Island. 4. Social responsibility of businessIndonesiaSumbawa Island. 5. Social responsibility of businessColoradoGreenwood Village. 6. CapitalismIndonesiaSumbawa Island. 7. EthnologyIndonesiaSumbawa Island. I. Title.

HD9506.I54N49 2014

338.8872209598dc23

2013041573

Manufactured in the United States of America

23 22 21 20 19 18 17 16 15 14

10 9 8 7 6 5 4 3 2 1

In keeping with a commitment to support environmentally responsible and sustainable printing practices, UC Press has printed this book on Natures Natural, a fiber that contains 30% post-consumer waste and meets the minimum requirements of ANSI/NISO Z 39.481992 ( R 1997) ( Permanence of Paper ).

Contents
Illustrations
MAPS
FIGURES
TABLE
Abbreviations

BSR

Business for Social Responsibilityw

CSR

Corporate Social Responsibility

DPR

Dewan Perwakilan Rakyat (Peoples Representative Council, or House of Representatives)

IFC

International Finance Corporation (part of the World Bank)

IMS

Integrated Management System

IPM

Integrated Pest Management

LBI

Local Business Initiative

LOH

Lembaga Olah Hidup, an environmental and social justice NGO based in Sumbawa Besar

NGO

Nongovernmental Organization

NNT

Newmont Nusa Tenggara

NTB

Nusa Tenggara Barat, a province that encompasses Lombok and Sumbawa island, with provincial headquarters in Mataram, Lombok

PBU

PT Prasmanindo Boga Utama, a catering firm that supplies mining companies

PRA

Participatory Rural Appraisal

PT

Perseroan Terbatas, limited liability company

Acknowledgments

It has taken me a long time to research and write this book, and I have accrued many debts along the way. I can name only some of those who have helped me here.

Over the course of my research in southwest Sumbawa, many people allowed me to take part in their lives, sometimes for extended periods of time, and they patiently answered my questions. I am deeply grateful to them, and to the Newmont employees, some of whom were also village residents, who kept me apprised of and included in their activities. Among those living in the villages of Sekongkang Bawah, Sekongkang Atas, Tongo-Sejorong, SP1, SP2, Maluk, Benete, Goa, Beru, and Belo, I am especially indebted to Fadila Marleni, Pak Rahmat Hidayat, Bu Madiana, Pak Puakang, Bu Mari, Pak Samrah, Pak Teten, Mama Esi, Bu Subaedah, Mbak Endang, Bu H. Ipa, Pak H. Mukhlis, Bu H. Asia, Pak H. Nasaruddin, Pak H. Ali, Bu Palisa, Pak H. Sarugyi, Bu Nani, Pak Yasin, Bu Badariah, Pak Dahlan, Pak Adam Master, Pak Muhid, Bu Suriya, Bibi Ibok, Wildan, Bu Boya, Pak Mahdar, Bu Gira, Pak Saluddin, Bu Norma, Bu Ratmina, Pak Zak, Bu Mirna, Pak M. Ali, Pak Sirajuddin, Pak Sanawi, Bu Martini, Pak Abdul Kadir, Bu Mindawati, Pak Abdul Manaf, Pak Syafruddin, Pak Syafii, Pak M. Saleh, Pak Zulkifli, Pak Hamim, Bu Erni, Pak Wahab, Pak Ahmad, Pak Isafie, Bu Nurol, Bu Titin, Pak Pare, Pak Sanusi, Pak H. Najamuddin, Pak Wahid, Pak Abdul Majid R., Bu Halimah and Pak Hamzah, Pak Agus, Bu Sri Nurnani, Pak H. Ismail, Pak Sanang, Pak Eiho, Bu Saridia, Pak H. Sidik, Pak Suleiman, Bu Hatma, Bu Sarinah, Pak Budi, Pak M. Saleh, Pak Farhan, Pak Jarwo, Pak H. Riu, Pak Ibrahim, Pak Rahmat, Bu Masriana, Bu Lindawati, Pak Hassanuddin, Pak Jabir, Pak Baharuddin Bayuk, Pak Baron/Abdul Azis, Pak Tahir, Pak Hamzah, Pak H.M. Fitra, Pak Darmansa, Pak Lalu Murdan, Pak Adnan, Muhammad Rizal, Pak Muchtasil/Acing, Dr. Adib, Dr. Abdullah, Pak Paiman, Pak Sukrie, Pak Arman, Pak M. Zambani, Pak Amril, Pak Syamsul, Pak Basuki, Pak Ramli, Pak Panidi, Pak Ivan Faturachman, Abdul Wahid, Bu Anisah, Lalu Mahfid, Pak Wagimin, Pak Iqbal, Lalu Yusuf, Agus Salim, Pak Basar, Pak Yuyud, and Pak Ismed.

I am grateful to Pusat Penelitian Bahasa dan Kebudayaan (P2BK, the Center for the Study of Language and Culture) at the University of Mataram for kindly supporting my research and providing swift help with all bureaucratic hurdles. The centers director, Dr. Husni Muadz, always provided a warm reception and stimulating conversation. Lembaga Ilmu Pengetahuan Indonesia (LIPI) in Jakarta sponsored my research.

I am also indebted to Helen Macdonald and Chris Anderson, and to their colleagues, consultants, and visitors at Newmont Mining Corporations headquarters in Denver, for allowing me to join meetings and conduct interviews and for providing requested materials. Sandi Yokooji was a great help as well. I also had meetings with government officials, activists, CSR professionals, and corporate employees in Sumbawa Besar, Mataram, Bali, Jakarta, and elsewhere in Indonesia, as well as in London, Brisbane, Berkeley, San Francisco, and Los Angeles. I am grateful to them all.

At a time when I was casting about for a feasible project on transnational extractive industries in Indonesia, I was fortunate to have help from a generous colleague, Brigham Golden. Brigham suggested I consider Newmont in Sumbawa and helped me get my research off to an auspicious start.

For various research phases I had material support from the Fulbright-Hays Program for Doctoral Dissertation Research, the Wenner-Gren Foundation for Anthropological Research, the National Science Foundation, the University of Michigans Center for International Business Education, and the Social Science Research Councils Program on the Corporation as a Social Institution. I also benefited profoundly from meetings held as part of the SSRC Program on the Corporation, ably led by Doug Guthrie. I am also grateful for a Weatherhead Fellowship at the School for Advanced Research and a Harry Frank Guggenheim Fellowship that supported the first incarnation of this project as a dissertation. An American Council of Learned Societies Fellowship, a Faculty Fellowship at Cornells Society for the Humanities, and Cornells Institute for the Social Sciences helped me turn the project into a book.

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