Kampung Kreasi, Waste Recycling-Based Social Tourism Program: Turning a Slum Area into a Tourist Destination

Abstract

As a market leader for lubricant manufacturers in Indonesia, Pertamina Lubricants continues to increase company value while providing sustainable benefits and added value to stakeholders and the environment. The establishment of Kampung Kreasi is Pertamina Lubricants’ Corporate Social Innovation (CSI) initiative by turning Sidokumpul village, Gresik district into an ecotourism destination through waste management, small land utilization, cultural preservation, and capacity building for community groups. CSI is related to the company’s core business and competency that can be developed through Life Cycle Assessment (LCA). Moreover, CSI is creating shared value, and the benefits of the CSI program are perceived directly by both the targeted group and the company. The effectiveness of CSI is measured by the Social Return On Investment (SROI) method, intended to determine the outputs and outcomes perceived by various stakeholders and also determine the comparison (ratio) between investment and benefits quantitatively. SROI measurement for Kampung Kreasi Program was organized using an evaluative method by measuring the impact generated over the past 3 years through in-depth interviews with members of youth organizations, tourism awareness groups, family empowerment programs, the Sidokumpul village government, and beneficiary communities. The results of the SROI analysis show that the benefit value is IDR 932,305,501 compared to the investment value of IDR 175,399,800. In other words, every investment of IDR 1 in the Kampung Kreasi program can produce benefits of IDR 5.32 (SROI = 1: 5.32).