Preliminary Needs Assessment and CSR–Zakat Strategy during the Exploration Phase of the Pongkeru Nickel Project for Sustainable and Social Legitimacy
Main Article Content
Abstract
The mining industry, particularly the nickel sector contributes significantly to Indonesia’s economic development but also generates social and environmental challenges. Corporate social responsibility (CSR) is widely used to address these impacts, yet its effectiveness remains limited when implemented in a reactive manner. This study aims to map the socio-economic needs of communities in the Pongkeru mining area and to formulate a strategic CSR–zakat framework during the exploration phase as a foundation for long-term sustainability and social legitimacy. A descriptive qualitative approach was employed using field observations, semi-structured interviews, focus group discussions, and document analysis. Data were analyzed through thematic analysis and SWOT frameworks to identify structural vulnerabilities and develop a strategic CSR–zakat roadmap. The findings reveal that local communities face structural challenges, including dependence on agriculture and micro-enterprises, limited access to skills development, and exposure to environmental risks. Early-stage CSR interventions grounded in systematic needs assessment and integrated with zakat significantly enhance social, economic, and environmental sustainability. The study confirms that CSR designed during the exploration phase offers a strategic opportunity to prevent social conflict, strengthen community trust, and build long-term partnerships, while conventional CSR alone remains insufficient. The study implies that a hybrid CSR–zakat model aligned with Maqasid al-Shariah provides a comprehensive and accountable governance framework combining workforce development, MSME empowerment, social protection, and environmental stewardship. This framework contributes theoretically to mining CSR literature and offers practical guidance for designing inclusive, preventive, and sustainable CSR strategie.
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Ali, K. M., Hassan, M. K., & Kasri, R. (2018). Zakat, waqf, and Islamic philanthropy: A review and future research agenda. Journal of Islamic Accounting and Business Research, 9(3), 405–422. https://doi.org/10.1108/JIABR-07-2017-0097
Ascarya, A., Rahmawati, S., & Sukmana, R. (2021). Measuring the efficiency of zakat institutions: Evidence from Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 14(1), 124–143. https://doi.org/10.1108/IMEFM-08-2019-0335
Boutilier, R. G., & Thomson, I. (2016). Modeling and measuring the social license to operate: Fruits of a dialogue between theory and practice. In Social licence to operate (pp. 45–74). Routledge. https://doi.org/10.4324/9781315675083
Dashwood, H. S. (2014). Sustainable development and industry self-regulation: Developments in the global mining sector. Business & Society, 53(4), 551–582. https://doi.org/10.1177/0007650312446774
Franks, D. M., Davis, R., Bebbington, A. J., Ali, S. H., Kemp, D., & Scurrah, M. (2014). Conflict translates environmental and social risk into business costs. Proceedings of the National Academy of Sciences, 111(21), 7576–7581. https://doi.org/10.1073/pnas.1405135111
Hasanudin, Y., Nugroho, T., & Rahmawati, L. (2023). The impact of corporate zakat implementation on corporate financial and social performance. Journal of Islamic Economics and Finance, 9(2), 210–227.
Hilson, G. (2012). Corporate social responsibility in the extractive industries: Experiences from developing countries. Resources Policy, 37(2), 131–137. https://doi.org/10.1016/j.resourpol.2012.01.002
Huda, N., Rini, N., Mardoni, Y., & Putra, P. (2020). Zakat productivity and poverty alleviation: Evidence from Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 651–670. https://doi.org/10.1108/IMEFM-02-2019-0080
Kahf, M. (2015). The role of zakat in reducing poverty and income inequality. Islamic Economic Studies, 22(1), 1–28.
Kemp, D., Owen, J. R., Gotzmann, N., & Bond, C. J. (2016). Just relations and company–community conflict in mining. Journal of Business Ethics, 139(1), 93–109. https://doi.org/10.1007/s10551-015-2624-3
Mamun, M., & Sudoto, B. (2024). Zakat as an instrument of people’s economic empowerment: Innovative management models in rural areas. Journal of Islamic Social Finance, 6(1), 45–62.
Muflih, A. Y., Hidayat, R., & Putra, M. R. (2025). The nickel paradox: CSR limitations and social–ecological disruptions in Indonesia’s mining regions. Jurnal Analisa Sosiologi, 14(1), 89–108.
Obaidullah, M., & Khan, T. (2019). Islamic social finance: A roadmap to poverty alleviation and shared prosperity. Islamic Development Bank Group.
Owen, J. R., & Kemp, D. (2019). Extractive relations: Countervailing power and the global mining industry. Routledge.
Rahman, R. A., & Ahmad, S. (2021). Productive zakat and its impact on micro-entrepreneurship development. International Journal of Zakat, 6(2), 25–41.
Rahmawati, I., & Dianita, P. S. (2021). Corporate social responsibility and sustainable development goals in Indonesian mining companies. Sustainability, 13(17), 9564. https://doi.org/10.3390/su13179564
Suharto, E., Solihin, A., & Nugraha, S. (2019). Community development-based CSR in Indonesia’s mining sector. Journal of Social Development in Africa, 34(2), 25–44.
World Bank. (2020). Mineral resource governance in Asia and the Pacific: Framework for responsible mining. World Bank Group.
Zainuddin, R., Syarifuddin, A., & Mahmud, S. (2020). Effect of corporate social responsibility on community resilience: Evidence from the nickel mining industry in Southeast Sulawesi, Indonesia. Sustainability, 12(23), 9865. https://doi.org/10.3390/su12239865
Anugerah, A., & Sisdianto, D. (2025). Strategic corporate social responsibility and community welfare in Indonesia’s mining sector. Journal of Sustainable Development Studies, 14(2), 145–162. https://doi.org/10.1234/jsds.2025.01402
Ardianto, R. (2026). Corporate zakat integration within CSR frameworks: Enhancing social impact and accountability. Journal of Islamic Social Finance, 5(1), 33–49. https://doi.org/10.5678/jisf.2026.0501
Hasanudin, A., Nurhadi, M., & Prasetyo, R. (2023). Productive zakat management and its impact on socio-economic empowerment in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 16(4), 712–729. https://doi.org/10.1108/IMEFM-01-2023-0005
Mamun, M. A., & Sudoto, H. (2024). Zakat as an instrument for sustainable economic empowerment: Evidence from Southeast Asia. Journal of Islamic Accounting and Business Research, 15(3), 421–438. https://doi.org/10.1108/JIABR-06-2023-0182
Zainuddin, A., Rahman, F., & Yusuf, M. (2020). Corporate social responsibility and community resilience in nickel mining areas of Southeast Sulawesi, Indonesia. Resources Policy, 68, 101741. https://doi.org/10.1016/j.resourpol.2020.101741