Abstract

Background – PT Pembangkitan Jawa-Bali (PT PJB) is a subsidiary of PT PLN (Persero) which participates in the Business Performance Rating Program in Environmental Management (PROPER) organized by the Ministry of Environment and Forestry (MoEF) of the Republic of Indonesia based on Ministry of Environment Regulation No 06 year 2013. As a subsidiary of PT PLN (Persero), PT PJB establishes management contracts which aim to get a Gold PROPER rating from the MoEF. Even so, the company still has some challenges as it encounters several problems of managing CSR internally. As a first step, PT PJB, especially in CSR Department, has made improvements in its organization by implementing a PROPER-based performance appraisal system in managing CSR in all PT PJB Power Plants. Purpose – Examining the phenomenon which has been occurring for the past several years, researcher decided to conduct observations and interviews. This study tries to explain descriptively how changes have been designed and implemented through the "Performance Management Model" approach. Design / Methodology / Approach – This study is a qualitative field research. The data for this research were collected through observation and interviews. Focus interview were about CSR concept, Company’s goal and target, integrated CSR management to Company’s vision and mission, CSR management problems in different area, and social-environment national issue. Data collected were then analyzed using content analysis method. Result and Discussion – Positive impacts were found after the implementation of change in management model at the CSR Department, such as maturity level in CSR management increased, charity program decreased, and human resources capability increased. The result that One of the company’s Power Plants, Paiton Power Plant, won the Gold PROPER rating. It could be considered as the biggest achievement since the company became the only power plant in the PLN (Persero) Group which first obtained a Gold PROPER rating. Conclusion – The establishment and implementation of PROPER-based governance system would not be optimum if it did not involve employees (Head Department, Managers, Supervisors, and staff) mastering in CSR. Research Limitations – This study has limitations in reference, namely the limited researches and previous journals on organizational change, particularly in the management of its CSR activities, which researcher found as reference material.

Highlights

  • PT Pembangkitan Jawa-Bali (PT PJB) is a subsidiary of PT PLN (Persero) which engages in electric power industry

  • PT PLN (Persero) sets a goal that PT PJB In running the business, PT PJB and its operational activities give big impacts on the communities around the plants owned by the company

  • In arranging the governance system, Corporate Social Responsibility (CSR) team from head office was assisted by external consultant who masters Performance Rating Program in Environmental Management (PROPER) and its standards of evaluation

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Summary

INTRODUCTION

PT Pembangkitan Jawa-Bali (PT PJB) is a subsidiary of PT PLN (Persero) which engages in electric power industry. The impacts are on the environment and social life for the society To manage these impacts, there are departments that help maintain the company's sustainable business, namely Corporate Social Responsibility (CSR). In addition to fulfilling the management contract with PT PLN (Persero), complying PROPER's performance was one of PT PJB’s strategic objectives in 2013-2018. It intended to be an attractive company to partner/ investor and other stakeholders. Department could not meet the target established in the contracts, there would be a reduction in points of power plants performance. It could affect overall employee compensation in the power plants This condition drove an action of change carried out by CSR Department.

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