SOCIAL RETURN ON INVESTMENT ANALYSIS OF COMMUNITYBASED WASTE MANAGEMENT CSR (STUDY CASE: PT GEO DIPA ENERGI)

• Main Author: Mutiara Sani W., Laurentia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62058
• Institution: Institut Teknologi Bandung

Sustainable Development Goals (SDGs) global consensus has been ratified by Indonesia and regulated on Government Regulation no. 59/2017. The SDGs goal number 12 is to substantially reduce waste generation through prevention, reduction, recycling, and reuse by 2030. PT GDP as the state-owned company is require to carry out the Corporate Social Responsibility (CSR) program. The company’s CSR pillars which is providing infrastructure, capacity building, and supporting the green environment could contribute to the national target of SDGs. Social Mapping research conducted in 2021 on the Ring-1 area of the company stated that waste management is the major problems faced by the community on the nearest village, therefore it become the priority of CSR program which should be addressed by the company. The internal and external analysis of company’s condition conducted with SWOT analysis resulted in TOWS strategy matrix. The analysis shows that the company may conduct the CSR on community waste management by initiating the partnership method with the local/public institution. Community-based waste management program is proposed to be the solution refer to current internal and external business situation. Meanwhile, since CSR program is a social investment, the company has to be confident with the return on investment from the project. This research integrates the Triple Bottom Line, Corporate Social Responsibility (CSR), and Capital Budgeting framework to propose the CSR program scheme and analyze the feasibility of the CSR project through the Social Return on Investment (SROI). With the 12.23% cost of capital and 4.26% average inflation rate, the calculation with triple bottom line concept considering economic, environment, and social benefit for 5 years project period resulted in the NPV of 2.19 billion with IRR 78% and SROI 3.43. It shows that the project is feasible to implement, with every Rp1.00 the company invest in the project, there are Rp3.43 benefit received by the society.