Challenge

Provide insights into the culture, history and development of a tropical Indonesian island for a project aiming to diversify the local economy now depending on a single company through the development of an ecotourism industry in the region.

Project Background

Amman Mineral is the largest employer in West Sumbawa. They operate 1.5km wide open-pit gold and copper mine, which they plan to close down by 2025.

To assure the long-term prosperity of local residents after the end of mining operation, Amman’s Corporate Social Responsibility (CSR) office is developing a program that aims to stimulate the tourism industry. Their goal is to develop an Integrated Tourism Master Plan for West Sumbawa that allows thousands of people currently depending on the mine to maintain their livelihood once mining operations stop.

Capacities

This report summarizes research conducted prior to any fieldwork. Our findings are based on literature review, cartographic analysis, and archival research.

Insight #1

The tailing pipeline coming from Batu Hijau Mine follows a path that cuts through an area that the Tourism Consultant Team has identified as a Priority Tourism Zone. The presence of this pipeline make Swiss Beach an unlikely location for a beach resort.

Tourism Planning ‘Tourism planning’ has emerged as a specialization of regional and urban planning. Much like urban planning, tourism planning requires a holistic approach that considers the social, political, territorial, economic and cultural aspects of a site. In addition, Tourism Planning must also take into account the goals and aspirations of non-local stakeholders (i.e. potential tourists, investors, etc.), which adds a level of complexity to its activities. Tourism planning assumes a central stage in the future of the tourism sector. Working alongside tourism marketing experts, planners are developing projective strategies designed to align with the principles of sustainable development. Following best practice, successful tourism planning projects should be capable “of being built and expanded with clear links to grassroots and thus developed without losing their own personality.” The related fields of Tourism Planning and Tourism Marketing thereby work conjointly to develop socio-cultural infrastructures destined to support tourism activities and bring tourists in.

Design Challenge

How might we define a more suitable use for Swiss Beach that’s not affected by the presence of a tailing pipeline?

Notwithstanding the cleanliness of the tailings, the mere presence of a pipeline into the sea can be disturbing for beach users. Irrespectively of its content, a pipeline goes against the idea of a Sumbawa as an island of stunning, untouched beauty. This is not to say that the area surrounding the pipeline could not serve a valuable purpose in a tourism development plan. Perhaps, the beach identify could be the perfect landing point onto the island and serve as pier.

Insight #2

The majority (60%) of the government workers employed as Financial Managers admitted to not be really comfortable using computers. This is an important insight for CSR programs intended to be handed over to local stakeholders in government offices.

Design Challenge

How might we support local government officers through capacity development programs? What kind of training would strengthen necessary skills to maintain and supervise new social programs in Sumbawa?

Insight #3

The mine’s well-funded CSR program rationalizes the inaction of public servants, who often count on Amman for closing the gap and providing public services.

Design Challenge

How might Amman continue to support local communities AND unblur the line between its primary role as a corporation and its secondary role fulfilling private sector duties?

Through its CSR program, the mining company has been involved in a number of public activities, including:
• Building mosques
• Building schools
• Building clinics
• Expelling waste
• Supporting various community and religious groups
• Repairing infrastructure
• Supporting agro production
• Creating training programs
• Creating coops
• Creating Local Business Initiatives

Insight #4

Hundreds of locals are employed in the food industry to cater meals for the mine’s employees.

Design Challenge

How might we take advantage of these skilled workers after mining operations end to grow the tourism industry?

In 2002, the second largest employer in the Regency was the catering company contracted by the mine, PT Prasmanido Boga Utama. It employed 619 people to staff Batu Hijau’s mess halls and commissary. Roughly one-third were women. Around 21% of their supplies were sourced lokal-lokally, with another 18% coming from Mataram and all the rice (around 55,000 kg per month) coming from NTB. This suggests two important things. First, that an important share of the population has some training in the food industry. Second, that many farmers will have to export their crops if many of the mine’s 4,000+ employees leave Sumbawa when mining operations stop.

Insight #5

Artisanal, small-scale mining use highly toxic substances to extract gold from the earth. These play a disproportionally large role in polluting Sumbawa that tarnishes the mining company’s reputation as a polluter.

Design Challenge

How might we address ‘dirty’ extraction methods use in this artisanal industry to lower the environmental impact of mining activities in Sumbawa?

While activists and environmental NGOs have been quick to blame mining operations at Batu Hijau for any degradation of the natural environment in West Sumbawa, a closer analysis suggests that many more actors are at play. As the largest and most visible company in the region, AMNT bears the burden of preserving Sumbawa’s environment.

These observations suggest that it may be in the company’s best interest to address the pollution created by surrounding industries in order to, (1) preserve its reputation as an industry leader in clean mining, and (2) educate local stakeholders on different ways to lower their environmental footprint.

Insight #6

The Batu Hijau mine introduced a new industry, employment standards, benefit programs and income levels to Sumbawans. Its jobs, much like its installations, are in sharp contrast to those traditionally found in Sumbawa. The introduction of this ‘new world’, so to speak, has engendered feelings of exclusion that could realistically be addressed.

Design Challenge

How might we introduce organizational design changes and new programs to reduce social jealousy in Sumbawa?”

As observed elsewhere around the globe, the introduction of wealth for part of the population has made the poverty of the other part of the population evermore poignant. Some villagers, for example, “spoke nostalgically about a time when they were all equally poor (sama-sama miskin).

Insight #7

Sumbawans’ observation of Islamic customs help explain the importance of gotong-royong in the local culture; an ethos of selflessness and concern for the common good that translates into ‘mutual assistance.’ This invaluable cultural trait for a tourism should be protected. However, it makes it difficult to implement the different entrepreneurship programs launched under the mine’s CSR program.

Design Challenge

How might we create programs that protect gotong-royong while encouraging the creation of homegrown entrepreneurs offering services fueling the tourism industry.

Next Steps

Our report sheds light on important historical, sociocultural and spatial elements that inform fieldwork in Sumbawa. As a next step, our team will perform a full capacity assessment, design workshops and participatory meetings to gain further insights into the livelihoods of Sumbawa’s residents. These insights and fieldwork will inform planning proposals that we develop in collaboration with community groups locally.

The project is currently on hold because of border lockdowns because of the COVID-19 crisis.