The aim of this research study is to explore what ethical issues emerge in the Indonesian mining industry? What shapes the emergence of these issues and how do organisations engage with them? Many research studies (e.g. Dierksmeier, 2013; Bowie, 2002; Cragg, 2002; and Moberg, 1997) emphasise the relevance of ethical theories in understanding ethical issues in business organisations. However, there remains a significant gap in the business ethics literature in understanding ethical issues in a context-sensitive manner. There is little awareness in most of these studies of the influence of the social structure of a multi-ethnic and multicultural society like Indonesia or of the specific industrial and organisational contexts which are being explored. There is therefore a challenge for researchers to provide a conceptual framework to study ethical issues which will fit the Indonesian mining companies’ situation. This research employed Critical Realism (CR) and a qualitative approach. Data was collected from forty-eight participant interviews with managers and employees of four mining companies in Indonesia. This made it possible to understand what ethical issues emerge in the mining industry and to examine what shapes their emergence, as well as how mining companies engage with the ethical issues. The findings revealed that the companies’ ethical concerns result from the particular characteristics of the industry and the Indonesian national culture. However, their ethical concerns typically reside in risk management and regulatory compliance. The findings showed that cultural mechanisms shape the emergence of ethical issues in the industry: family perspective and paternalism, religiosity, and multi-ethnicity. The study findings suggest that the mechanisms shaping the emergence of ethical issues at the organisations presented at times conflicting cases of instrumental or possibly unethical behaviour but also evidence of set rules and regulations as well as moral awareness, practices aimed at considering others and stakeholders’ interests. This research argues that to understand the ethical issues and how business organisations engage with them in a multi-ethnic and multicultural context, it is essential to ground the conceptual framework in both ethical theories and specific cultural sensitivities, as only then can the full story be grasped.

"February 2003" / Bibliography: leaves 183-198. / xv, 201 leaves : ill. ; 30 cm. / Title page, contents and abstract only. The complete thesis in print form is available from the University Library. / Aims to verify previous findings regarding the role of agroindustry in economic development with empirical data using a social accounting matrix framework, focussing on South Kalimantan province, Indonesia. Results show that agroindustry is suitable for maintaining economic growth and improving the welfare of poor farmers. / Thesis (Ph.D.)--University of Adelaide, School of Economics, 2004

This study identifies the Indonesian policies that established large scale, export oriented and externally controlled (LEE)industrialization from the perspective of local people in the industrializing area, the planning that implemented these policies in Central Java and the ways in which the local people's lives are being affected. It identifies the links between the policy and the planning, and between the planning and the impacts. This study is based on data gathered from provincial, municipal and local planners, affected people, factory owners, and workers. LEE industrial development has often been successful in terms of its contribution to Regional Gross Domestic Product (GDP) and to the creation of low wage employment opportunities. However, this success has been accompanied by significant economic, social and environmental impacts on local people. The economic impacts include loss of livelihood and jobs, and decrease of family income. The social impacts comprise the weakening of community cohesion and the disruption of the people's daily lives. The environmental impacts include floods, lack of clean water, water pollution, and air pollution. The impacts of LEE industrialization have been documented by various studies including this one. What has not been adequately analyzed and documented is the process that produces the impacts. This study helps to fill the gap. It concludes that the impacts stem from the following factors. The national development emphasizes large scale and export oriented industrialization. The top-down development planning ensures that this policy is supported at the provincial level regardless of local conditions, needs and priorities. The arbitrary nature of provincial decision-making provides for no popular input. Impact assessment studies fail to provide the information necessary for planners, decision-makers and ideally the local leaders about the likely impacts of industrialization. The way the responsible government agencies solve environmental problems tends to protect factory interests. The impacts are exacerbated by a lack of adequate monitoring and enforcement of environmental regulations. The thesis concludes that substantive policy reform and process restructuring are required to achieve sound planning for industrial development. If quality of life is to be protected and enhanced, industrial policies should be reoriented to strengthening existing local economic activities; and planning restructured to enable local planners and affected people to be fully involved at all stages including impact management.

This study identifies the Indonesian policies that established large scale, export oriented and externally controlled (LEE)industrialization from the perspective of local people in the industrializing area, the planning that implemented these policies in Central Java and the ways in which the local people's lives are being affected. It identifies the links between the policy and the planning, and between the planning and the impacts. This study is based on data gathered from provincial, municipal and local planners, affected people, factory owners, and workers. LEE industrial development has often been successful in terms of its contribution to Regional Gross Domestic Product (GDP) and to the creation of low wage employment opportunities. However, this success has been accompanied by significant economic, social and environmental impacts on local people. The economic impacts include loss of livelihood and jobs, and decrease of family income. The social impacts comprise the weakening of community cohesion and the disruption of the people's daily lives. The environmental impacts include floods, lack of clean water, water pollution, and air pollution. The impacts of LEE industrialization have been documented by various studies including this one. What has not been adequately analyzed and documented is the process that produces the impacts. This study helps to fill the gap. It concludes that the impacts stem from the following factors. The national development emphasizes large scale and export oriented industrialization. The top-down development planning ensures that this policy is supported at the provincial level regardless of local conditions, needs and priorities. The arbitrary nature of provincial decision-making provides for no popular input. Impact assessment studies fail to provide the information necessary for planners, decision-makers and ideally the local leaders about the likely impacts of industrialization. The way the responsible government agencies solve environmental problems tends to protect factory interests. The impacts are exacerbated by a lack of adequate monitoring and enforcement of environmental regulations. The thesis concludes that substantive policy reform and process restructuring are required to achieve sound planning for industrial development. If quality of life is to be protected and enhanced, industrial policies should be reoriented to strengthening existing local economic activities; and planning restructured to enable local planners and affected people to be fully involved at all stages including impact management. / Applied Science, Faculty of / Community and Regional Planning (SCARP), School of / Graduate