Enacting the Corporation An American Mining Firm in Post-Authoritarian Indonesia Marina Welker university of california press Berkeley • Los Angeles • London Enacting the Corporation The University of California Press gratefully acknowledges the support of the Hull Memorial Publication Fund of Cornell University, which provided funds toward the publication of this book Enacting the Corporation An American Mining Firm in Post-Authoritarian Indonesia Marina Welker university of california press Berkeley • Los Angeles • London University of California Press, one of the most distinguished university presses in the United States, enriches lives around the world by advancing scholarship in the humanities, social sciences, and natural sciences Its activities are supported by the UC Press Foundation and by philanthropic contributions from individuals and institutions For more information, visit www.ucpress.edu University of California Press Berkeley and Los Angeles, California University of California Press, Ltd London, England © 2014 by The Regents of the University of California Library of Congress Cataloging-in-Publication Data Welker, Marina, 1973–, author Enacting the corporation : an American mining firm in post-authoritarian Indonesia / Marina Welker pages cm Includes bibliographical references and index isbn 978-0-520-28230-8 (cloth : alk paper) isbn 978-0-520-28231-5 (pbk : alk paper) isbn 978-0-520-95795-4 (ebook) Newmont Mining Corporation Newmont Nusa Tenggara, PT Mineral industries—Social aspects—Indonesia—Sumbawa Island Social responsibility of business—Indonesia—Sumbawa Island Social responsibility of business—Colorado— Greenwood Village Capitalism—Indonesia— Sumbawa Island Ethnology—Indonesia—Sumbawa Island I Title HD9506.I54N49 2014 338.8′872209598—dc23 2013041573 Manufactured in the United States of America 23 22 21 20 19 18 17 16 15 14 10 In keeping with a commitment to support environmentally responsible and sustainable printing practices, UC Press has printed this book on Natures Natural, a fiber that contains 30% post-consumer waste and meets the minimum requirements of ansi/niso z39.48–1992 (r 1997) (Permanence of Paper) Contents List of Illustrations List of Abbreviations Acknowledgments Note on Pseudonyms and Quoted Sources Introduction “We Need to Newmontize Folk”: A New Social Discipline at Corporate Headquarters “Pak Comrel Is Our Regent Whom We Respect”: Mine, State, and Development Responsibility “My Job Would Be Far Easier If Locals Were Already Capitalists”: Incubating Enterprise and Patronage “We Identified Farmers as Our Top Security Risk”: Ethereal and Material Development in the Paddy Fields “Corporate Security Begins in the Community”: The Social Work of Environmental Management “We Should Be Like Starbucks”: The Social Assessment Conclusion: “Soft Is Hard” Notes Bibliography Index vii ix xi xvii 33 67 99 129 157 183 215 219 249 281 This page intentionally left blank Illustrations maps The Indonesian islands of Sumbawa and Lombok, in West Nusa Tenggara province / The Batu Hijau Copper and Gold Mine’s main infrastructure and the surrounding villages / The new administrative regency of West Sumbawa / 90 figures Children and adults pan for gold at a Colorado festival / 37 A Colorado festival booth display about minerals, metals, and fuels / 38 Newmont executives discuss a voluntary industry code for cyanide management / 46 A Tongo-Sejorong resident making palm sugar in the forest / 76 Community infrastructure projects generate both local employment and business contracts / 85 Lombok women learn literacy skills with help from an NGO contracted by PT NNT / 105 Tongo-Sejorong residents butchering a bull on the Day of Sacrifice / 113 vii viii | Illustrations A Maluk businessman prepares to convert his property into workers’ rentals / 122 A typical elevated home / 124 10 The luxurious-looking home of a village resident who works at Newmont / 125 11 Farmers taking part in an integrated pest management training / 142 12 A member of the Environment Department presents revegetation work / 162 13 The office of Aspirasi, which has both collaborated with and criticized Newmont / 163 14 Visitors taste mine tailings during a visit to the mine / 164 15 Nyale (sea worms) caught at dawn / 166 16 A Sekongkang resident uses crowbars to pry an octopus from the reef / 167 17 Preparing raw seafood sepat for seashore consumption / 167 18 Newmont auditor engaged in a desktop review of PT NNT / 199 19 An auditor quizzes one of Newmont’s private security guards / 204 table Debating corporate strategies / 27 Abbreviations BSR CSR DPR IFC IMS IPM LBI LOH NGO NNT NTB PBU PRA PT Business for Social Responsibility Corporate Social Responsibility Dewan Perwakilan Rakyat (People’s Representative Council, or House of Representatives) International Finance Corporation (part of the World Bank) Integrated Management System Integrated Pest Management Local Business Initiative Lembaga Olah Hidup, an environmental and social justice NGO based in Sumbawa Besar Nongovernmental Organization Newmont Nusa Tenggara Nusa Tenggara Barat, a province that encompasses Lombok and Sumbawa island, with provincial headquarters in Mataram, Lombok PT Prasmanindo Boga Utama, a catering firm that supplies mining companies Participatory Rural Appraisal Perseroan Terbatas, limited liability company ix Bibliography | 275 Schüll, Natasha Dow 2012 Addiction by Design: Machine Gambling in Las Vegas Princeton, NJ: Princeton University Press Schuman, Michael 2001 “Stolen Treasure: How Big Mining Lost a Fortune in Indonesia.” Wall Street Journal, May 16 Schwittay, Anke 2011 “The Marketization of Poverty.” Current Anthropology 52(S3):S71–S82 Scott, James C 1976 The Moral Economy of the Peasant: Rebellion and Subsistence in Southeast Asia New Haven, CT: Yale University Press 1985 Weapons of the Weak: Everyday Forms of Peasant Resistance New Haven, CT: Yale University Press Seidman, Gay W 2003 “Monitoring Multinationals: 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integrated pest management, 134–35, 137, 145, 154, 239nn6,7; and Islam, 21; and land disposession, 131; and local hiring, 132; and transmigration program, 131–32, 238–39nn1,2 See also farmer trainings; Green Revolution Ahmed, Sara, 43, 57, 203, 222n20, 246n13 Aidarus, 178 Allen, Kenneth D., 224n36 Alliance of Near-Mine Communities for Justice, 179, 244n26 ameliorative discipines, 41–42 See also Corporate Social Responsibility Amphibi, 20 Anderson, Chris: background of, 33–34; and charismatic vs rationalizing tactics, 44–46, 47; and Choropampa mercury spill, 51–52, 54, 228n26; and Colorado mining culture, 37; and contested nature of Corporate Social Responsibility, 42, 44; and disciplinary identification, 39; and geologist roles, 48–49; and Newmont corporate transformation, 55, 58, 60–61; on noble savage myth, 243n15; transfer of, 64–65 Annan, Kofi, 15 Antlöv, Hans, 236–37n3 APCO, 50, 227n24 Appel, Hannah, 79–80 Aragon, Lorraine V., 223n24 Aspirasi, 163 auditing practices, 185, 187–89, 245nn6,7 See also Five Star Integrated Assessment bad apples approach, 52–53, 159–60 Bakan, Joel, 160 Bakrie, Aburizal, 92 Bali bombing (2002), 25–26, 207, 224nn31,32, 246n19 Ballard, Chris, 71 Banks, Glenn, 71 Basic Agrarian Law, 239n3 Batu Hijau mine: expatriate employees, 24–25, 245n4; exploration phase, 73–74, 120, 232nn10–12; preconstruction/construction phases, 74–79, 232nn13,14 See also local hiring; Newmont relations with local community Benson, Peter, 15, 221n14 Bergman, Lowell, 53 Berle, Adolf A., 28 Bimas program, 133, 239n8 Blair, Tony, 89 bluewashing, 14, 222n19 Boele, Richard, 61, 191–93, 192, 194, 245n11 bottom line See corporate-interests perspective 281 282 | Index Boyce Thompson Institute for Plant Research, 224n34 Boyd, Stephanie, 50 Boyer, Dominic, 211 Brereton, David, 187 Brockovich, Erin, 53 Brundtland Commission, 70 BSR See Business for Social Responsibility Bubandt, Nils, 123 Business for Social Responsibility (BSR), 47, 61, 229n38 Cabellos, Ernesto, 50 Callon, Michel, 220n5 Cattelino, Jessica, 219n4 charismatic tactics, 44–47, 227n17 Choropampa: The Price of Gold, 50, 52 Choropampa mercury spill, 50–55, 186, 227–28nn25–29 Climate Registry, 188 collective actors, 1–3, 219n1 Collins, Jim, 55, 228n34 Colorado mining culture, 36–39, 226nn5,6,9,10 Colorado School of Mines, 36 Community Development Department: and agriculture, 134; and local patronage demands, 86; new leadership, 103–5; and Newmont relations with Indonesian state, 68; rivalry with Community Relations Department, 106–7; and shift towards Newmont as patron, 126–27; and state responsibilities, 93–98; and sustainable development model, 69; and Western virtue/Indonesian corruption narrative, 86 See also farmer trainings; sustainable development model Community Relations Department (Comrel): and entrepreneurial values training, 112; and Five Star Integrated Assessment, 188–89, 206; and Islamization policy, 22, 23–24; and local patronage demands, 86; and Newmont as patron, 22, 69; and Newmont relations with Indonesian state, 68; rivalry with Community Development Department, 106–7; and Western virtue/ Indonesian corruption narrative, 86; and Women’s Empowerment Workshop incident, 177 Comrel See Community Relations Department Conboy, Kenneth J., 224n32 consent, 232n14 Cooper, Frederick, 84, 222–23n21 corporate culture, 228–29n34 corporate-interests perspective, 18; and Choropampa mercury spill, 53; and Corporate Social Responsibility, 13–14, 15, 16, 35, 47; and geologist roles, 49; and Islamization policy, 21–22, 24; and lightness vs heaviness, 64; malleability of, 26–28; and Newmont as environmentally responsible, 173; and Newmont as patron, 106 See also profit maximization imperative corporate security: and corporation as multiple and enacted, 31–32; and enclave status, 158; and local hiring, 106–7; and Newmont as patron, 159; and Newmont relations with local community, 50; Voluntary Principles on Security and Human Rights, 158–59, 242n5; and wageless population, 132 See also risk management Corporate Social Responsibility (CSR), 12–17; and auditing practices, 187, 245n6; charismatic vs rationalizing tactics, 44–47, 227n17; and Choropampa mercury spill, 50, 51–52, 53, 54–55; cognate movements, 221n12; contested nature of, 34–35, 41, 42–44, 54–55, 58, 65, 227nn15,16; and corporate-interests perspective, 13–14, 15, 16, 35, 47; and corporate security, 158–59; and disciplinary identification, 40–41, 225n2; and economy of care, 62–63; and environmental activism, 170; and geologist roles, 47–50; and institutional memory, 30; and labor issues, 13, 222n15; limits of, 65–66; manager backgrounds, 33–34; and neoliberalism, 14–15, 16–17; and Newmont as environmentally responsible, 161; and Newmont corporate transformation, 56, 57–58; progressive critiques of, 14–15, 66, 222n19; and regulation, 13, 15, 221n14; and revenue transparency, 89; and risk management, 30, 58, 59, 205, 229n36; on soft vs hard issues, 215–16; and sustainable development model, 16–17, 102; and voluntary corporate responsibility codes, 13, 14–15, 158 corporate transformation See Newmont corporate transformation corporation as liberal subject: and advocacy, 217–18; and blame, 2; and Index corporate security, 31; and Corporate Social Responsibility, 15, 16; and enclave status, 80; and Homo economicus model, 1–2, 15, 31, 217–18; legal theory on, 12–13, 221n13; metaphysical approach, 3; and Newmont as patron, 69; and profit maximization imperative, 13, 15, 16; and strong theory/weak theory dichotomy, 217 corporation as multiple and enacted: and advocacy, 217–18, 247nn1,2; and corporate security, 31–32; and corporation boundaries, 2–3, 219n2; and executive/managerial roles, 35; and Islamization policy, 18–19, 22, 23; and malleability of profit maximization imperative, 26–28; materialist approach, 3–4, 219n4; and Mol on disease, 5, 220n5; and Newmont as patron, 69; and Newmont corporate transformation, 57; and ownership, 2, 219n3; and questioning stance, 16, 17–18, 222n20, 223n23, 225n3; and relational model, 4–5; and transactional activities, 5–6 Coumans, Catherine, cyanide, 47, 227n21 Davis, Gerald F., 221n13 Deepwater Horizon disaster, 231n7 Denning, Michael, 82 Dewey, John, 221n13 Dharma Wanita, 233n19 disciplinary identification, 35–36, 39–41, 207–8, 225n2, 226n11 Doctors Without Borders (Médecins Sans Frontières), 63 Dodge v Ford, 13 Echols, John, 147 embedded research, 6–7, 9–12, 34, 220nn8,9, 221n11 Enos, Tom, 22, 88, 187, 242n8 environmental activism: and Choropampa mercury spill, 53; and Colorado mining culture, 39; and Five Star Integrated Assessment, 211; and moral-political alliances, 244n28; Newmont attacks on, 169–74; and noble savage myth, 168, 243n15; and political Others, 158, 242n2; on poverty as enemy of environment, 165, 242n12; PT Newmont Minahasa Raya lawsuits, 184; Women’s Empowerment | 283 Workshop incident, 157, 177–82 See also environmental impacts of mining environmental impacts of mining, 243n18; Bu Halimah article, 174–77, 178, 243–44n22; Choropampa mercury spill, 50–55, 186, 227–28nn25–29; and Corporate Social Responsibility, 65; and cyanide use, 227n21; and ethical issues, 10; and farmer trainings, 137; and Five Star Integrated Assessment, 211; Newmonster narrative, 160–61, 242n7; and Newmont as environmentally responsible, 168, 243n17; and Newmont corporate transformation, 65; and tailings disposal, 7, 32, 183, 233n21, 244n23 See also environmental activism; Newmont as environmentally responsible ethical issues: and Corporate Social Responsibility, 14, 15; and embedded research, 7, 10–12, 220nn7,9, 221n11 ethnography, 9–10 See also embedded research executive compensation, 230n44 executive/managerial roles: accountability, 54, 228n31; bad apples approach, 52–53, 159–60; and community patronage demands, 84–85; and corporation as multiple and enacted, 35; and disciplinary identification, 35–36, 39–41, 226nn11–13; and Five Star Integrated Assessment, 60, 61, 62, 199–205, 210–12, 246n17; intense interest in, 228n30; lightness vs heaviness, 63, 86, 107, 230n42; and Newmont corporate transformation, 59–61; and Women’s Empowerment Workshop incident, 180–81 expatriate employees, 24–25, 245n4 External Relations Department, 68, 69, 96, 102–3, 132, 191, 236n30 Extractive Industry Transparency Initiative, 89, 235n25 farmer trainings, 135–56; activity failure, 146–47; and asbun, 147–48; and class differences, 145, 240n19; cultural unintelligibility of, 144–46; empowerment goals, 140–42; facilitators, 136–37, 149, 241n22; and gender, 144, 240n18; and Green Revolution, 137–40, 145–46, 154, 155, 240nn12–14; and hybrid agronomy, 137, 239–40n11; and integrated pest management, 137, 145, 284 | Index farmer trainings (continued) 154; on leaders vs motivators, 152–53, 241n23; on neoliberalism, 140–41, 240n15; and Newmont as patron, 131; participant selection, 143–44; and participatory development, 135–36, 144, 145, 146, 148, 151–52; resistance to, 148–54, 155, 241n21; and scientific idiom, 141, 240nn16,17; and subjectformation, 129–31, 148, 155–56, 240–41n20; and sustainable development model, 154–55; and valorization of agriculture, 142–43 Ferguson, James, 180 Five Star Integrated Assessment, 31; adoption of, 187; auditor roles, 191–95, 245n11, 246nn12–14; background of, 186–89, 245n5; and company standards, 56, 189–91, 203; conclusion of, 207–9; crises during, 183–84, 213, 245n2; document review, 195–99, 246nn15,16; executive/managerial responses, 60, 61, 62, 199–205, 210–12, 246n17; and local community, 194, 205–7, 229–30n40, 246nn13,18; Newmont pride in, 187, 245n7; procedures, 185, 190–91, 245n3; stakeholder reports, 185, 209–12, 246–47nn20–22,24; terminology, 245n1; and voluntary corporate responsibility codes, 56, 188, 245n9 See also Newmont corporate transformation Fligstein, Neil, 29 Fluor Daniel, 76–77 Flyvbjerg, Bent, 192 Fonseca, Alberto, 212 food consumption, 10, 11, 20–21 Fortun, Kim, 54, 57, 169, 170, 218, 227n17, 247n2 Forum of Youth, Students, and Poor Communities of NTB, 179 Foucault, Michel, 130, 150, 240n20 Freeport, 71, 161, 163–64 Freire, Paulo, 143 Friedman, Milton, 13–14, 222n18 Friends of the Earth, 211 Fujimori, Alberto, 53 Fuss, Diana, 217 42, 227n16; and farmer trainings, 144, 240n18; and Five Star Integrated Assessment, 194; and soft vs hard issues, 215; and sustainable development model, 104, 105 geologist roles, 47–50 George, Ken, 155 Ghosh, Bishnupriya, 223n21 Gibson-Graham, J K., 216 Global Reporting Initiative, 188 Global Response, 39 globalization, 17, 222–23n21 Goethals, Peter, 78, 233n17 Goffman, Erving, 193, 194, 220n9 Good to Great (Collins), 55 Goodmont narrative See Newmont as environmentally responsible gotong-royong, 109, 110, 124 Graeber, David, 5–6 Gramsci, Antonio, 152, 246n20 Green Revolution, 133–34, 135, 239nn4–6; and farmer trainings, 137–40, 145–46, 154, 155, 240nn12–14 greenwashing, 14, 222n19 Gupta, Akhil, 239–40n11 Guyer, Jane, 43 Gymnastiar, Aa, 237–38n12 Gallagher, Robert, 21, 121–22 gender: and charismatic vs rationalizing tactics, 45, 46; and contested nature of Corporate Social Responsibility, illegal mining, 51, 161, 169, 227–28n25, 243n17 IMS (Integrated Management System), 56–58, 60, 61–62, 62–64, 65 Habibie, Bacharuddin Jusuf, 89 Halimah, 174–77, 178, 179, 181 Hammerschmid, Kurt, 61 Hart, Gillian, 84, 133 Harvey, David, 223n21 Hatta, Mohammed, 115 Henkel, Heiko, 240n20, 241n21 Herzfeld, Michael, 230n41 High, Holly, 83 Hirsch, Paul M., 225n37 Hobbes, Thomas, 98 Homo economicus model of corporations, 1–2, 15, 31, 217–18 Honna, Jun, 237n5 Hull, Matthew S., 145, 147, 239n10 human resources departments, 13, 45, 227n15 Hurgronje, Snouk, 223n24 Hutter, Bridget M., 54 hybrid agronomy, 137, 239–40n11 Index Indonesia: map, 8; village settlement patterns, 231n8 See also Indonesian state; Newmont relations with Indonesian state; Sumbawa Indonesian state: and agriculture, 133, 239nn3,4; community criticisms, 67–68, 89–92; indigeneity in, 75, 190, 244n22; natural resources policies, 71–72, 231n4; and Pancasila, 109, 236–37nn3– 5; regional autonomy laws, 89, 234n24; and religion, 19; transmigration program, 19, 20, 131–32, 231n8, 238nn1,2 See also Newmont relations with Indonesian state; post-Soeharto Indonesian society; Soeharto regime Integrated Management System (IMS), 56–58, 60, 61–64, 65 integrated pest management (IPM), 134–35, 137, 145, 154, 239nn6,7 International Council on Mining and Metals, 188 International Cyanide Management Institute, 188 International Organization for Standardization (ISO), 61, 188 IPM (integrated pest management), 134–35, 137, 145, 154, 239nn6,7 Islam: and entrepreneurial values training, 112–14; in Indonesia, 19–20, 224n30; in Sumbawa, 20–21, 223n24 See also Islamization policy Islamization policy, 18–26; and corporateinterests perspective, 21–22, 24; and corporation as multiple and enacted, 18–19, 22, 23; and expatriate employees, 24–25; and local hiring, 23–24; and localization, 22, 223–24n27; and Newmont as patron, 21, 22–23, 224n28; and proselytization, 25, 224n30; and terrorism fears, 25–26, 224nn31,32 ISO (International Organization for Standardization), 61, 188 Jackall, Robert, 63, 225n38, 226n11, 227n20, 228nn30,31, 230n42 Jacoby, Karl, 226n11, 227n15 Jemaah Islamiyah, 184, 213, 224n32 Jenkins, Heledd, 246n21 Just, Peter, 223n24 Kantorowicz, Ernst, Keane, Webb, 52 Kemp, Deanna, 192, 194, 205 Keynes, John Maynard, 237n11 | 285 Kipnis, Andrew B., 192 Kirsch, Stuart, 70 Knobe, Joshua, Koh, Kyung-Nan, 221n11 Kothari, Uma, 146, 240–41nn20,21 Krause, Elizabeth, 216 Kunda, Gideon, 226n11, 227n16, 229n34 labor issues, 13, 222n15 Laidlaw, James, 23 land disposession, 75, 76, 131, 232n13 Laskar Jihad, 20 Lassonde, Pierre, 33 Latour, Bruno, 28, 220n5, 247n1 LBI (Local Business Initiative), 116–20 Lembaga Olah Hidup (LOH), 170, 172, 173, 174, 178 Lévi-Strauss, Claude, 48 Local Business Initiative (LBI), 116–20 local elites: and agriculture, 134; alternating politics stereotype, 180–81, 244n27; characteristics of, 233n17; and construction phase, 77–79, 233n16; and Five Star Integrated Assessment, 206; and Newmont as patron, 78, 87–88; and Women’s Empowerment Workshop incident, 177, 178, 181–82 local enterprise, 99–120; cooperatives, 114–16, 237n9; and Newmont as patron, 82, 102, 110–12; and patronagesustainable development model rivalry, 106–7; and procurement, 99–100, 116–20; and Western virtue/Indonesian corruption narrative, 101, 108, 110, 126 See also sustainable development model local hiring, 99; and agriculture, 132; construction phase, 77; and corporate security, 106–7; exploration phase, 74, 120, 232n10,12; hierarchy among, 81, 233n19; and Islamization policy, 23–24; and local elites, 79; and marine foraging, 242n13; mine operation phase, 80–82; and Newmont corporate transformation, 229–30n40; and skill levels, 233n18; and wageless population, 82–83, 115 localization, 22, 223–24n27 Locke, John, LOH (Lembaga Olah Hidup), 170, 172, 173, 174, 178 MacDonald, Gary, 88–89 Macdonald, Helen: background of, 34; and charismatic vs rationalizing tactics, 286 | Index Macdonald, Helen (continued) 44–45, 46–47; and Choropampa mercury spill, 54; and disciplinary identification, 39, 40, 41; and geologist roles, 48; on Newmont as patron, 59, 69; and Newmont corporate transformation, 57, 58, 60, 61–62, 63–64, 229n38, 230n43; on soft vs hard issues, 216; transfer of, 64–65 Malozemoff Technical Facility, 225n4 Mamdani, Mahmood, 22 managerial roles See executive/managerial roles maps: Indonesia, 8; Southwest Sumbawa, 9; West Sumbawa regency, 90 Marx, Karl, 238n14 Mauss, Marcel, Mayo, Elton, 229n34 McDonald’s, 223–24n27 Means, Gardiner C., 28 Médecins Sans Frontières (Doctors Without Borders), 63 mercury contamination, 50–55, 186, 227–28nn25–29, 243n18 Merukh, Jusuf, 72–73, 92, 231n6 Meyerson, Debra, 93 Millon, David, 221n13 Mineral Information Institute, 37–39 mining industry, anthropology of, 222n16 Mitchell, Timothy, 3–4, 223n22 Miyazaki, Hirokazu, 225n3 Mol, Annemarie, 5, 16, 218, 220n5 Monks, Robert, 222n18 Montesinos, Vladimiro, 53 moral corporation: bad apples approach, 159–60; and Choropampa mercury spill, 52–53, 54; and Corporate Social Responsibility, 17, 34–35; and Newmont as patron, 12, 86–87; and Newmont corporate transformation, 58–59; and Newmont relations with Indonesian state, 73, 231n7; and profit maximization imperative, 160; and risk management, 58–59; and Western virtue/Indonesian corruption narrative, 73, 86–87 See also Newmont as environmentally responsible Morris, Jack, 42 Mosse, David, 240n20 Muhammadiyah, 21 Multi Daerah Bersaing, 92 Multicapital, 92–93 multiplier effect, 121, 237n11 Murdy, Wayne, 39, 51, 55, 56, 59–60, 226n10, 228n30 Myers, Fred, 34 Nadasdy, Paul, 243n15 neoliberalism: and auditing practices, 188; and Corporate Social Responsibility, 14–15, 16–17; farmer trainings on, 140–41, 240n15; Foucault on, 130; vs globalization, 17, 222–23n21; and local enterprise, 118; and Pancasila, 237n5; and participatory development, 239n10; questioning stance on, 17, 18, 223n22; and revenue transparency, 234–35n25; and sustainable development model, 17, 71, 102, 105, 154–55 Net Impact, 246n22 New Deal, 29, 224n35 New Order regime See Soeharto regime Newmonster narrative, 160–61, 242n7 Newmont: Ghana mine operation, 30, 35, 39, 49, 65; history of, 28–30, 224– 25nn1,35,37,38; legal team, 46, 227n20; public relations firms, 50, 170–74, 227n24; Uzbekistan venture, 27–28, 50; visibility of, 33, 187 Newmont as environmentally responsible, 161–74; and attacks on NGOs, 169–74, 243n20; and Corporate Social Responsibility, 161; and illegal mining, 169, 243n17; internal vs external motivation, 242n8; Project Green Shield, 172–74, 243n19; and tailings disposal, 10, 162–64, 242nn9,10; and Western virtue/Indonesian corruption narrative, 164–68, 242nn11,13,14; and Women’s Empowerment Workshop incident, 179 Newmont as patron, 30–31, 127–28; and agriculture, 134; community coproduction of, 69; community criticisms, 74, 76, 224n28, 230n1, 233–34n21; community demands, 32, 82, 83, 84–86, 103–4, 180; and cooperatives, 115; and corporate-interests perspective, 106; and corporate security, 159; and embedded research, 11, 12; and entrepreneurial values training, 110–12; and exploration phase, 74, 232nn10–12; and farmer trainings, 131; financial implications of, 69, 70, 231n2; and Islamization policy, 21, 22–23, 224n28; and local elites, 78, 87–88; and local enterprise, 82, 102, 110–12; and moral corporation, 12, Index 86–87; and Newmont corporate transformation, 59, 64; vs NGO assistance, 84; and revenue transparency, 88–89; rivalry with sustainable development model, 106–7; shift towards, 126–27; and social jealousy, 121–25, 238nn13,14; and state development failure, 67–68, 70, 82–83, 90, 91, 94, 233n20, 235n26; and wageless population, 82–83, 87, 115; and Women’s Empowerment Workshop incident, 181; and worker housing, 121, 122 See also local hiring Newmont corporate transformation, 55–64; Business for Social Responsibility handbook, 61, 229n38; and company standards, 56, 189–91, 203; and corporate heterogeneity, 57; and Corporate Social Responsibility, 56, 57–58; and economy of care, 62–63, 230n41; and institutional memory, 30; Integrated Management System, 56–58, 60, 61–62, 62–64, 65; and local hiring, 229–30n40; and risk management, 58–59, 230n43; roll-out, 59–64; and social license concept, 55–56, 60–61, 229n35; suspension of, 65; and universal ethics, 62, 229n39; and values, 48, 55, 228–29nn33,34 Newmont headquarters: and Colorado mining culture, 36–39, 226nn5,6,9,10; and embedded research, 6, 7; and pastoral capitalism, 225n4 Newmont relations with Indonesian state: departmental assignments, 68–69; divestment, 91–92, 235n27; and local hiring/procurement, 100; Merukh partnership, 72–73, 231n6; and moral corporation, 73, 231n7; preconstruction phase, 75; and regional autonomy laws, 91–92; revenue transparency, 88–89, 90, 234n23; and state natural resources policies, 71–72, 231n4; and sustainable development model, 93–98, 236nn30,31 Newmont relations with local community: community criticisms, 120–21; and consent, 232n14; construction phase, 75–79; and corporate security, 50; and Corporate Social Responsibility, 13; enclave status, 79–80, 121, 158; exploration phase, 73–74, 232nn10–12; External Relations Department problems, 102–3; and Five Star Integrated Assessment, 194, 205–7, | 287 229–30n40, 246nn13,18; and Islamization, 21, 22–23, 224n28; land disposession, 75, 76, 131, 232n13; and local elites, 77–79, 233n16; and mine lifespan, 104, 236n2; and Newmont corporate transformation, 62, 229–30n40; omnipresence, 7, 220n6; and participatory development, 135–36 See also corporate security; local enterprise; local hiring; Newmont as patron; sustainable development model noble savage myth, 168, 243n15 nongovernmental organizations (NGOs): and agriculture, 134; and Corporate Social Responsibility, 46, 47; local criticisms, 179–80; and Newmont as patron, 84; Newmont attacks on, 169–74, 243n20; transparency expectations, 174, 243n21 See also environmental activism normative control, 229n34 O’Brien, Richard, 230n44 Oinas, Päivi, 219n2 Olds, Kris, 26 Ortner, Sherry B., 9–10, 220n9 Osborne, Thomas, 195 Owen, John R., 205 Packard, Randall M., 84 Pancasila, 109, 236–37nn3–5 participatory development, 239n8, 241n21; and farmer trainings, 135–36, 144, 145, 146, 148, 151–52; and neoliberalism, 239n10 pastoral capitalism, 225n4 patronage model See Newmont as patron PBU (PT Prasmanindo Boga Utama), 77, 99–101 Pemuda Pancasila, 106 People’s Front for Protecting Investment, 179–80 People’s Front for Protecting the Mine, 180 Philip Morris, 221n14, 227n24, 228n34 Pickens, T Boone, 29, 225n37 pinkwashing, 14, 222n19 Polanyi, Karl, 220n8 Porter, Theodore M., 57 post-Soeharto Indonesian society: corruption suspicions, 148–49, 179; criticisms of, 93–94; gangsterization, 87; and local elites, 78; and local enterprise, 118; as post-authoritarian state, 68; religion in, 19–20 postmodernism, 221n11 288 | Index Power, Michael, 54, 58, 191, 201, 210, 223n23 profit maximization imperative: as claim-making device, 30; and corporate merger movement, 29; and Corporate Social Responsibility, 13–14, 15, 16; criticisms of, 222n17; and Homo economicus model, 2; malleability of, 26–28; and moral analytics, 160; and moral corporation, 160; and respect for law, 13–14, 222n18 Project Green Shield, 172–74, 243n19 Project Underground, 53, 160, 242n6 PT Industri Batu Hijau, 103, 114 PT Newmont Minahasa Raya, 21, 184 PT Newmont Nusa Tenggara, 72, 231n5 See also Batu Hijau mine; specific headings beginning with Newmont PT Newmont Pacific Nusantara, 72 PT Prasmanindo Boga Utama (PBU), 77, 99–101 PT Pukuafu Indah, 72, 73, 92 Publish What You Pay campaign, 89 Puig de la Bellacasa, Maria, 217, 247n1 Pusat Investasi Pemerintah, 93 racism, 52–53, 63 Rajak, Dinah, 18 Rapid Response, 56–57, 59–60 rationalizing tactics, 44–47, 227n17 Redfield, Peter, 63, 86, 107 regulation: and Corporate Social Responsibility, 13, 15, 221n14; and Newmont history, 29, 30, 224nn35,36 Reiffel, Alex, 239n8 relational model of corporations, 4–5 reserve replacement, 48 resource curse, 89, 234–35n25 revenue transparency, 88–89, 90, 234– 35nn23,25 Ripken, Susanna K., 221n13 risk management: and auditing practices, 188–89; as claim-making device, 30; and Corporate Social Responsibility, 30, 58, 59, 205, 229n36; and Newmont corporate transformation, 58–59, 230n43; and terrorism fears, 209 Robbins, Joel, 232n14 Ross, Michael L., 234n25 Rudnyckyj, Daromir, 240n19 Røyrvik, Emil, 229n35 safety issues, 183, 245n2 See also environmental impacts of mining Sagaroa, Yani, 178 Sandman, Peter, 57 Sarkar, Bhaskar, 223n21 Sawyer, Suzana, 221n13, 244n27 Schneider, Jane, 125, 126 Schneider, Peter T., 125, 126 Scott, James C., 241n22 security See corporate security sedekah, 112–13 Serikat Buruh Sejahtera Indonesia, 234n22 Shadily, Hassan, 147 Shamir, Ronen, 14, 17 shareholders as owners, 2, 219n3 shareholder-value perspective See profit maximization imperative Shever, Elana, 105 Shore, Cris, 192 Smith, Adam, 28 social auditing, 192 See also Five Star Integrated Assessment social jealousy, 121–25, 238nn13,14 social license concept, 41, 48, 55–56, 60–61, 229n35 Soeharto regime: and agriculture, 133, 135, 140, 239n4; and class differences, 240n19; depoliticization under, 243n20; development under, 83; economic crisis under, 77; and egalitarianism, 123, 237–38n12; and employee hierarchies, 233n19; Freeport ties to, 71, 161; and gotong-royong, 109; Islam under, 19; legacy of, 68; and local elites, 78; and local hiring, 106; natural resources policies, 71–72; and preconstruction phase, 75 soft vs hard issues, 215–16 South Africa, 30, 225n39 Spence, Crawford, 246n20 stakeholders: and Five Star Integrated Assessment, 185, 209–12, 246–47nn20– 22,24; and Newmont as patron, 127; and Newmont attacks on NGOs, 172–73; and Newmont corporate transformation, 64, 65; and risk management, 58; and voluntary corporate responsibility codes, 15 state See Indonesia; Newmont relations with Indonesian state; Soeharto regime state as actor, 3–4, 219n4 Stearns, Linda Brewster, 224n36 Stevenson, Lisa, 230n41 Stirrat, Roderick, 240n20, 241n21 Stout, Lynn, 222n17 Strathern, Marilyn, 5–6, 198, 246n12 Index subject-formation, 129–31, 148, 240–41n20 Sukarno, 19, 124, 133, 140 Sumbawa: Islam in, 20–21, 223n24; maps, 9, 90; marine foraging, 10, 165–67, 242n11; natural resources, 73, 104, 108, 232n9; and Pancasila, 237n3; poverty, 73–74; village settlement patterns, 231n8 See also Batu Hijau mine; local elites; local enterprise; local hiring; Newmont relations with local community Sumitomo Corporation, 72, 92 sustainable development model, 30, 69, 127–28; and civil servant opportunities, 95, 236n29; and Corporate Social Responsibility, 16–17, 102; definitions of, 70, 231n3; and entrepreneurial values training, 108–14, 237n8; and farmer trainings, 154–55; and gender, 104, 105; and modesty, 93, 235–36n28; moral limitations of, 125–26; and neoliberalism, 17, 71, 102, 105, 154–55; Newmont adoption of, 93–94, 103–4; and Newmont corporate transformation, 64; as oxymoron, 70–71; reform agenda, 114–20; rivalry with patronage model, 106–7; and state responsibilities, 93–98, 236nn30,31 See also farmer trainings tailings disposal: and environmental impacts of mining, 7, 32, 183, 233n21, 244n23; and Newmont as environmentally responsible, 10, 162–64, 242nn9,10 Tapscott, Don, 210 “Taste of Colorado” festival (Denver), 37–39 terrorism fears: and Bali bombing (2002), 25–26, 207, 224nn31,32, 246n19; and Five Star Integrated Assessment, 207, 209; and Islamization policy, 25–26, 224nn31,32; and Jemaah Islamiyah rumor, 184, 213 Thompson, William Boyce, 28 Thrift, Nigel, 26 Ticoll, David, 210 Tidey, Sylvia, 118 Tongo, 176, 243–44nn22–24 See also local elites; local enterprise; local hiring; | 289 Newmont relations with local community transmigration program, 19, 20, 131–32, 231n8, 238–39nn1,2 Tutut (Siti Hardiyanti Rukmana), 75 UN Conference on Environment and Development (1992), 70 UN Global Compact, 15, 222n19 Urban, Greg, 221n11 U.S foreign policy, 21–22, 24, 223–24n27 van de Graaf, Shashi, 205 Visser, Kees, 235n25 voluntary corporate responsibility codes, 13, 14–15, 47, 56, 158–59, 188, 242n5, 245n9 Voluntary Principles on Security and Human Rights, 158–59, 242n5 Watson, James, 223n27 Weber, Max, 44, 198–99, 219n1, 230n41 Western virtue/Indonesian corruption narrative: and expatriate employees, 245n4; and Islamization policy, 24; and lightness vs heaviness, 230n42; and local enterprise, 101, 108, 110, 126; and moral corporation, 73, 86–87; and Newmont as environmentally responsible, 164–68, 242nn11,13,14 Willis, Paul, 131, 155 Winarto, Yunita T., 150 Women’s Empowerment Workshop incident (2002), 157, 177–82 World Bank, 235n25 Wright, Susan, 192 Yakovleva, Natalia, 246n21 Yanagisako, Sylvia Junko, 108, 223n22 Yayasan Olat Parigi, 103, 121, 134, 139, 154, 176 Young, Iris Marion, Yurchak, Alexei, 211 Žižek, Slavoj, 66 Zulkifli, KH Muhadli, 90, 91, 106 ... publication of this book Enacting the Corporation An American Mining Firm in Post-Authoritarian Indonesia Marina Welker university of california press Berkeley • Los Angeles • London University... England © 2014 by The Regents of the University of California Library of Congress Cataloging -in- Publication Data Welker, Marina, 1973–, author Enacting the corporation : an American mining firm in. .. Corporation and its Batu Hijau Copper and Gold Mine in Sumbawa, Indonesia, shows that each of these questions can be answered in multiple ways Newmont does many things These include mining ore; employing