The Role of Social License to Operate in Geothermal Energy Power Plants Development in Indonesia

DOI IR IR (HANDLE) Open Access

Description

Social license to operate (SLO) is a concept that was initially coined in the 1990s as a metaphor to indicate that approval from the local community is crucial in the extractive industry apart from the legal licenses. In Indonesia, the local community is the biggest non-technical challenge in developing geothermal resources. In response to these challenges, this paper aims to analyze the influential elements in obtaining an SLO. The empirical analysis is based on a qualitative method comparing two geothermal power plant development projects in Indonesia with different outcomes to test the hypotheses defined in the study. Exploring why the two cases obtained unprecedented community support, this paper argues that these two companies have different approaches to communities affected by geothermal development projects. In particular, this study highlights the importance of building trust with local communities by implementing the four vital elements to achieve and maintain an SLO. Continuing the dialogue between theory and practice, the results obtained in this study are expected to contribute to the study of SLO in geothermal power development and broader extractive industries. This research discloses aspects previously less focused on the approaches of development companies, which make a significant difference in SLO.

Journal

Keywords

Details 詳細情報について

Report a problem

Back to top