Environment and Social Framework: Compromise of Interest as Social Conflicts Resolution in Infrastructure Projects

Abstract

This research is a development from the previous studies that aimed to test the ability of the World Bank's Environment and Social Framework (ESF) in minimizing the impact of social conflict projects in the context of environmental and social protection. The study used samples from infrastructure projects in Indonesia sourced from the State Budget throughout 2018-2021. There were 120 respondents who participated in this study by filling out a questionnaire. Meanwhile, secondary data is obtained through indexes and official government data regarding the condition of local communities that reflect the level of interest. Using PLS-SEM method, the results of significant influence from ESF in minimizing the potential impact of social conflicts in the project were obtained. ESF can effectively become a "compromise of interest" for the project and the community. This study also proves the independence of ESF, where both interests are unable to affect the quality of ESF. This proves that the position of ESF as an effective legal tool in managing environmental and social impacts needs to be strengthened by firm regulation. The results of this study are expected to help further research in finding differences in project social conflict behavior based on cultural differences in Indonesia.

Developing a Sustainable Business Model in the Bioeconomy: A Case Study of an Amazon Rainforest Enterprise

“…So, enterprises' business models are demanded to indicate how the value is created and delivered while being attractive to the customer and beneficial to the environment and society [7]. Local communities affected by the enterprises' operation should be considered as part of the business model [8]. A sustainable business model (SBM) is a model that creates a competitive advantage through value and, at the same time, contributes to the sustainable development of the enterprise and society [9].…”