Coal Mining and MSME: Is it Mutually Beneficial?

Abstract

The existence of a coal mining company in the vicinity of the community is something to be feared related to environmental damage due to coal mining. On the other hand, coal mining can have a positive impact on the economy of communities around the mine through corporate social responsibility programs. The problem in this research is that MSMEs need help to improve their performance. Therefore, this research aims to examine how the role of mining companies through corporate social responsibility (CSR) programs can contribute to the development of MSMEs in communities around mining areas. The company provides promotional assistance, funding, and capacity building. This research conducted surveys and interviews with respondents, namely MSMEs, around mining locations. The findings show that corporate social responsibility programs in coal mining companies have a positive impact on empowering MSMEs in communities around the mine. By providing training and promotion facilities to MSMEs, mining companies can also improve MSME performance compared to providing access to financial assistance programs. The company not only takes advantage of mining and focuses on its environmental impact but also the company’s role in empowering MSMEs.