Transforming Coastal Communities to Adapt Climate Change through Corporate Social Responsibility

This paper explores the impact of CSR initiatives in transforming coastal communities to adapt to climate change. The study uses a qualitative method to describe the initiatives’ social effects and elucidate the community transformation process. Quantitative data is also employed to measure the contribution of CSR to the economy and the environment. The findings demonstrate that the company introduces solar panel-based fish finder and aquaponics technology, enabling communities to achieve energy efficiency, reduce emissions and production costs, and increase income. The company also strives for sustainable livelihoods for coastal communities through quail, catfish, and eel cultivation, supported by organic waste management. The evidence shows that the CSR initiatives have been able to convert 744 kilograms of waste into maggot feed, processing 2,634,490 liters of liquid waste to reduce water pollution, generating 3,579 kilowatt-hours of energy from solar panels, resulting in cost savings of IDR 59,199,167, and income growth of IDR 360,947,840. Moreover, the implementation of climate-friendly technologies has led to a reduction in emissions by approximately 12.77 tons CO2e. Overall, this research highlights the significant role of CSR initiatives in transforming coastal communities that are adaptive to climate change while providing tangible economic and environmental benefits.


Introduction
Humanity faces a defining battle against the rising tide of climate change.Its far-reaching consequences extend beyond the realm of environmental concerns to permeate various facets of our lives, including the economy, society, and culture.Particularly vulnerable to the adverse effects of climate change are coastal communities, whose very existence hinges on the natural resources provided by the coastal environment.These communities rely heavily on the sea, beaches, and delicate coral reef ecosystems for their livelihoods.This interdependence between people and their coastal surroundings underscores the urgency of addressing climate change and implementing targeted strategies to safeguard the wellbeing of these communities.The repercussions of climate change on the environment, such as extreme weather events, ocean acidification, rising sea levels, and coral bleaching, threatens their traditional way of life.Furthermore, the economic and societal consequences, such as income loss and increased vulnerability to natural disasters, necessitate concerted efforts to mitigate and adapt to these changes Figure 1 depicts that the global average surface temperature in 2011 ranked as the ninth warmest since 1880.This data reaffirms the trend wherein nine out of the ten hottest years recorded in modern meteorology have occurred post-2000.The escalation of greenhouse gas concentrations in the atmosphere, notably carbon dioxide, is the driving force behind this phenomenon.Evidence suggests that industrialization is the primary source of climate change, although various natural phenomena, such as the movement of continental plates and volcanic eruptions, maybe the trigger.Industrial companies are responsible for developing coastal communities to adapt to climate change.In this context, CSR refers to social, economic, and environmental initiatives carried out by companies.These initiatives are expected to go beyond legal requirements and consider their activities' social, economic, and ecological impacts.PT Kilang Pertamina Internasional (KPI), a part of PT Pertamina (Persero), specializes in refining crude oil into a range of fuel products including gasoline, diesel, and LPG.Playing a crucial role, KPI actively contributes to fulfilling Indonesia's energy requirements and fostering the nation's economic advancement.As a State-Owned Enterprise (BUMN), KPI strives for community development as a form of social responsibility.Many CSR programs have been carried out by KPI, including the Dumai Minapolitan Initiative.This initiative transforms the livelihoods of coastal communities to reduce their vulnerability and improve livelihoods to achieve sustainability.
Coastal communities face the imperative task of adaptation, requiring the implementation of wellsuited strategies to mitigate the adverse consequences of climate change and secure their economic, social, and environmental sustainability.This call for adaptation acknowledges the unique challenges that coastal areas confront, including the escalating risks of sea-level rise, intensifying storms, and coastal erosion [2].In the United States, prolonged overexploitation of groundwater has resulted in significant land subsidence [3], thereby threatening the sustainability of coastal communities.In Thailand, rapid tourism industry growth has been accompanied by marine pollution and environmental degradation.The rapid urbanization of coastal areas has generated social tensions between traditional coastal communities and the tourism industry [4].In Nigeria, coastal water pollution and industrial waste have ignited prolonged conflicts between coastal communities and oil companies, particularly concerning rights to natural resource management [5].The Statistical Document of Marine and Coastal Resources reports that significant challenges facing coastal communities in Indonesia include the exploitation of fish stocks, degradation of marine resources, and declining fishermen.In 2010, there were approximately 2.16 million fishermen, with only 1.83 million remaining in 2019-a decrease of 330,000 fishermen from 2010 to 2019 [6].These challenges reflect coastal communities' geographic, economic, social, and ecological diversity worldwide, often necessitating locally tailored solutions.
By adopting appropriate measures, such as resilient infrastructure, sustainable land-use planning, and ecosystem conservation, these communities can bolster their resilience against climate-related hazards.Effective adaptation is not solely about preserving economic prosperity but also about ensuring the cohesion of communities and safeguarding the delicate coastal ecosystems.In essence, it underscores the necessity of a comprehensive approach to safeguarding the holistic well-being of coastal regions in a changing climate.Strong partnerships among various stakeholders are needed to address the challenges facing coastal communities.This is because coastal challenges are often complex and require a holistic approach.In some cases, industrial companies have played a significant role in addressing coastal communities' challenges, particularly in climate change.
This paper examines the challenges faced by coastal communities in Dumai City and the role of KPI in transforming vulnerable coastal communities to adapt to climate change through the Dumai Minapolitan initiative.Furthermore, this research explains the company's CSR strategy so that it can provide significant benefits and impacts for coastal communities, both from social, economic, and environmental aspects, to achieve sustainability.This research can provide insights and basic practical recommendations for companies, governments, and coastal communities to develop more effective and sustainable programs/initiatives by understanding company strategies to encourage coastal communities to adapt to climate change.

Method
Researchers used mixed research methods, using qualitative and quantitative data.This research uses qualitative data to explain the company's strategy for transforming coastal communities and determine the social impact of this process.Meanwhile, quantitative data is the basis for measuring CSR initiatives' economic benefits and environmental impacts.Data collection methods include surveys, direct observation, and secondary data.Interviews were conducted with fishing communities, ngokang communities, women MSME activists, local government officials such as the Village Head and the Village Community Empowerment Institute (LPMK), company CSR staff, CSR partners such as the Dumai City Fisheries and Maritime Service, as well as other supporting informants.Data collected through quantitative and qualitative methods are analyzed separately and further synthesized to gain deeper insights.Statistical analysis serves to examine quantitative data, whereas thematic analysis is employed for the scrutiny of qualitative data.Through qualitative research, researchers identify CSR challenges and strategies for transforming coastal communities that are adaptive to climate change.Through the same analysis, researchers describe the social impact of the transformation process.Quantitative calculations show economic and environmental benefits, especially in supporting coastal communities' efforts to adapt to climate change.
To validate their findings, researchers employed triangulation, cross-referencing information from multiple origins including surveys, interviews, and secondary data.This method relied on diverse sources and input from various informants.Researchers integrated both quantitative and qualitative data to construct a holistic portrayal of the company's strategy in revitalizing coastal communities, the effects of this transformation, and the economic, social, and environmental advancements resulting from Corporate Social Responsibility (CSR) initiatives.Drawing from these insights, the researchers devised recommendations to enhance and advance the company's CSR initiatives, alongside proposing policy guidelines that could bolster analogous endeavors.

Coastal Communities Challenges in Dumai City
Dumai City, located in Riau Province, Indonesia, is one of the coastal cities heavily reliant on the fishing sector for livelihoods and economic sustenance.However, the coastal communities of Dumai face a slew of challenges that threaten the sustainability of their livelihoods and overall quality of life.Based on the findings, several challenges faced by coastal communities in Dumai City include: Increasing understanding of climate change and developing effective adaptation strategies will be critical for fishing communities to continue their livelihoods in the face of this challenge.

Non-fishing ground area regulations
The Ministerial Decision No. 819, which imposes a ban on fishing in the navigation area of Dumai City, represents a policy that has had a profound impact on the lives of local fishermen.This policy has reshaped the landscape for fishermen, presenting substantial challenges.As a result, fishermen are now compelled to embark on longer, riskier journeys to deeper waters to secure their fish catches.This extended journey consumes more time and demands greater physical exertion and significant additional costs, including higher boat fuel expenses.Furthermore, this ban has had a detrimental effect on the availability of fish in the region, as fishermen have to seek fish in areas that may not have been extensively explored previously.In the long term, this can disrupt the marine ecosystem and the availability of crucial fishery resources essential to the livelihoods of these fishermen, who rely on their catches for sustenance.

"Ngokang" as Illegal Barter Activities
The challenging economic conditions have driven some fishermen to engage in illicit activities known as "ngokang," representing a desperate attempt at making ends meet in the face of financial hardship.This illegal bartering activity involves exchanging discarded ship materials for essential commodities.While it might appear as a means of survival, ngokang activities carry grave repercussions.Firstly, they violate the law, exposing those involved to legal consequences that can further exacerbate their economic plight.Moreover, the safety of those participating in such transactions is compromised, as these deals often occur in unregulated and potentially hazardous environments.Beyond the legal and safety concerns, ngokang activities bring about many other issues, including facilitating illegal drug transactions.The clandestine nature of these transactions and the unmonitored exchange of goods can create fertile ground for the illicit drug trade, contributing to drug-related issues within Dumai.The bartering process may also contribute to environmental pollution in Dumai's waters.The exchange of ship-related materials can introduce pollutants into the marine environment, worsening the already compromised state of Dumai's waters.Consequently, while pengokang may seem like a coping mechanism in challenging economic circumstances, its illegal nature and multifaceted risks underscore the need for a comprehensive response to address its complex issues.The persistently low economic well-being among fishermen has engendered a disinterest among the younger generation in continuing the longstanding fishing tradition, posing a multifaceted threat to Dumai City.Other studies show that socio-economic and cultural barriers are progressively constraining the prospects available to young fishermen in rural areas.These barriers have led to systemic issues concerning welfare and poverty [7].This evidence of dwindling enthusiasm for fishing among the youth not only jeopardizes the city's food security but also exacerbates the demographic challenge.With an aging population of fishermen who should ideally be retiring from the hazardous work at sea, there's a pressing concern over the sustainability of the fishing industry.
The absence of a new generation to succeed them leaves the city vulnerable to potential food shortages, as the elderly fishermen may eventually be unable to meet the demands of a growing population.Beyond the economic implications, this generational shift also endangers the cultural and maritime heritage of Dumai.The fishing profession has been a core element of the city's identity, shaping its culture and traditions for generations.The decline in interest among the younger generation threatens to erode this cultural heritage, diminishing the city's unique maritime identity.Therefore, the economic struggles of the fishing community, coupled with the waning interest of the youth, underscore the urgency of comprehensive measures to revitalize the fishing industry, preserve cultural heritage, and secure the city's food security for generations to come.KPI has initiated Dumai Minapolitan as a fisheries area with an integrated, efficient, high-quality production system.This initiative has transformed the lives of coastal communities previously engaged 4. Lack of Interest Among the Youth in Fishing in "barter trading," an activity that could be categorized as illegal, unsafe, and potentially harmful to companies.Through the alternative employment opportunities provided, coastal communities can once again contribute to local food security threatened by climate change and other challenges.Through processed fish products, KPI also promotes awareness among coastal communities to pay attention to their children's nutrition by strengthening local-level partnerships.Supported by machine mechanic training for youth groups, Dumai Minapolitan has the potential to shape a resilient and empowered coastal generation in Dumai City.

Integration of inland fisheries and marine catches
Based on some evidence, this strategy can significantly enhance fisheries productivity by combining the cultivation of freshwater fish, such as catfish and eel, while simultaneously providing training and support for traditional fishermen [8].Integration enables coastal communities to diversify their products, creating new, higher-value items like fish crackers and nuggets.This allows them to maximize their resources for income diversification.In the densely populated environment of Dumai City, this integration allows for more efficient land use, as landbased ponds and tanks can utilize otherwise unused or unsuitable land for agriculture.However, freshwater aquaculture requires careful management.Oversight of water quality, fish health, and feed management involves the Department of Marine and Fisheries and the Marine and Fisheries Polytechnic of Dumai City to minimize the negative environmental impacts of aquaculture practices.
2. Providing social insurance for fishermen through quail cultivation Quail farming can serve as a crucial social insurance for fishing communities, mainly when they cannot enter the sea due to increasingly unpredictable weather conditions.Quails are relatively easy to raise and have a short reproductive cycle, thus providing a consistent source of income in the short term.Land use in coastal areas for quail cultivation has become a trend as an economic mitigation effort due to climate change [9].In times when fishing activities are hindered by adverse weather or extreme climate changes, income from quail farming remains reliable.Furthermore, quail farming is not contingent upon unstable sea conditions and is less susceptible to climaterelated risks such as inclement weather or rising sea temperatures.Consequently, quail farming emerges as a potential alternative that can reduce the economic vulnerability of fishing communities to climate fluctuations and support the sustainability of their livelihoods.

Workforce optimization through Betuah Green Laundry
Betuah Green Laundry is a notable initiative by KPI, addressing social and environmental concerns while harnessing the human resource potential within the company's operational sphere.A crucial contextual factor is the social mapping conducted in 2022, which revealed that Dumai City is densely populated with many migrants and industrial workers, leading to a substantial demand for laundry services.However, the laundry business poses a unique threat to the environmental sustainability of the coastal community, particularly in terms of soil and water pollution [10].Through Betuah Laundry, KPI Unit Dumai introduces the concept of environmental sustainability into its business processes.This is achieved through the adoption of organic soaps and eco-friendly packaging, alongside the implementation of waste management practices within the laundry business.Consequently, KPI Unit Dumai enhances the community's capacity and creates employment opportunities, effectively addressing the laundry needs of industrial workers who require wearpacks.This initiative is a holistic example of corporate social responsibility, effectively integrating environmental sustainability with community development and livelihood improvement.It demonstrates how businesses can play a pivotal role in mitigating their operations' environmental impact while benefiting the communities in which they operate.

Increasing capacity and employment opportunities through scholarships and ship mechanic training
Providing ship mechanic training and scholarships for the children of fishermen has significant potential to enhance the well-being of coastal communities.Ship mechanic training imparts valuable skills crucial in the maritime and fishing industries, thereby increasing employment opportunities and income for individuals within coastal communities.Furthermore, offering scholarships to the children of fishermen grants them access to quality education, reduces educational disparities, and enhances their future career prospects.With improved education and skills within coastal communities, they can better address economic challenges, such as fluctuations in fishing yields, and become more resilient to climate change impacts on their livelihoods.This is not only an investment in individual well-being but also has the potential to boost coastal communities' resilience and overall economic sustainability.
5. Production efficiency through various innovations such as fish finders, aquaponics, solar panels, and waste management Companies drive several innovations to enhance community adaptation and mitigation of climate change.First, using fish finder technology in fishing can create significant efficiency.This tool allows fishermen to identify and track the location of fish schools more quickly and accurately.Consequently, they can save time, fuel, and resources, reduce the risk of inefficient fish catches, and minimize negative impacts on the marine ecosystem by reducing unwanted catches.Second, using solar panels for quail coop lighting helps achieve energy efficiency and contributes to environmental sustainability.Solar panels generate electricity from renewable energy sources, reducing dependence on fossil fuels.This saves energy costs and reduces greenhouse gas emissions, benefiting the environment.Third, managing quail droppings as maggots can yield dual benefits.It reduces environmental pollution from animal waste, which can create health and environmental problems if not properly managed.Additionally, maggots are used as fish farming feed, reducing the need for commercial feed that impacts fisheries and livestock ecosystems.Fourth, managing aquaculture waste to produce seed feed, organic fertilizer, and support aquaponics systems maximizes resource utilization, reduces environmentally polluting waste, and makes products that can be reused in food and agricultural production.Fifth, using household waste as fish feed reduces organic waste entering landfills.This also promotes sustainability in fish production by utilizing existing feed sources, reducing the need for commercial fish feed often associated with wild fish capture.Sixth, converting laundry waste into organic fertilizer is an environmentally friendly step.It reduces water pollution from detergents and laundry chemicals entering the environment.This organic fertilizer can also enhance soil fertility in agriculture, reducing dependence on chemical fertilizers and maintaining agricultural sustainability.
6. Improving production quality through partnerships with various stakeholders Overall, this partnership creates synergy among the government, education, training, and healthcare sectors to achieve the goal of empowering coastal communities in Dumai City.First, collaborating with the fisheries department to provide fish fingerlings ensures the availability of necessary resources for fish farming.This helps local fish farmers gain more accessible access to quality fish fingerlings, enhances their productivity, and contributes to the food security of the coastal community.Second, collaborating with the maritime and fisheries polytechnic to transfer knowledge related to solar panels and feed processing technology is a crucial step in introducing innovation and efficiency into coastal farming practices.The training and expertise provided by the polytechnic aid fish farmers and quail breeders in adopting environmentally friendly and sustainable technologies.Third, the partnership with the Vocational Training Center (Balai Latihan Kerja or BLK) for training and certification creates opportunities for coastal community members to enhance their skills.With certificates granted by the BLK, individuals can expand their job prospects, increase their income, and support local economic development.Fourth, the collaboration with the University of Riau in fisheries waste processing innovation creates opportunities to add value to waste generated from fishing activities.This innovation may include using waste as raw material for other products or more sustainable production processes.Fifth, the partnership with Posyandu in selling fisheries products as the Growth Monitoring Program (PMT) for stunted infants is a highly positive effort in promoting the nutrition and health of coastal communities.It helps market local fisheries products and ensures that these products provide health benefits to children, which is crucial in preventing nutritional problems.

How Dumai Minapolitan provides social, economic, and environmental impacts on the coastal communities
The Dumai Minapolitan program, initiated by PT KPI, has had profound social impacts on the wellbeing of the coastal communities in Dumai City.The initiative has significantly fostered participation among the coastal residents, leading to notable improvements in various aspects of their lives.In 2019, 14 traditional fishermen joined the initiative, beginning community involvement.Their active participation in the program paved the way for even more significant changes in the following years.By 2020, an additional group of 16 illegal barter communities, known locally as "pengokang," became part of the initiative.This expansion broadened the program's reach and integrated previously marginalized individuals into sustainable economic activities.
- In 2021, another milestone was achieved as five small-scale fisheries processing businesses (SMEs), comprising mainly women, joined the initiative.This diversification of participants showcased the program's inclusivity and ability to empower various community segments.Furthermore, KPI's efforts to provide boat mechanic training to 20 coastal residents in the program's vicinity in the same year demonstrated its commitment to skill development and capacity building.
The success of the initiative in augmenting the income of coastal residents catalyzed more individuals to engage actively in community-based initiatives.As of 2023, an additional 16 pengokang, inspired by the positive outcomes, united to establish Betuah Green Laundry, thereby expanding the scope of economic opportunities within the community.Dumai Minapolitan has engaged a diverse group of participants, including 14 traditional fishermen, 32 pengokang, five women-led SMEs, and 20 young individuals, all from the coastal areas of Dumai City.This comprehensive inclusion underscores the program's effectiveness in reaching a wide demographic within the community.
The partnership between this initiative and Posyandu, a community health post, is particularly noteworthy.Their collaborative efforts have successfully improved the nutritional status of children in the area.In an impressive outcome, the initiative, in conjunction with Posyandu, has managed to address the dietary deficiencies of five out of 21 malnourished toddlers in Dumai's coastal region.This demonstrates the program's holistic approach, which goes beyond economic empowerment to address crucial social and health issues, ultimately enhancing the overall well-being of the coastal community.
Based on Table 1, the "Dumai Minapolitan" CSR program demonstrates a comprehensive approach to promoting economic and environmental sustainability in coastal communities.It generates economic value, addresses gender disparities, reduces environmental pollution, and contributes to carbon emissions reduction.These initiatives empower communities and enhance their resilience, making significant contributions to society's and the environment's well-being.Firstly, converting 2,599 m3 of inland aquaculture waste into organic fertilizer has generated an economic value of IDR 27,549,400 and contributed significantly to the overall monetary value, totaling IDR 173,749,400.This initiative promotes economic sustainability by creating income-generating opportunities.Secondly, support for Small and Medium-sized Enterprises (SMEs) in the fisheries sector, mainly women-run, has generated IDR 11,000,000 in revenue by producing three seafood products.While the profit margins may be smaller than those of farming groups, this initiative empowers women entrepreneurs in the fisheries sector, addressing gender disparities.Secondly, support for SMEs in the fisheries sector, mainly women-run, has generated IDR 11,000,000 in revenue by producing three seafood products.While the profit margins may be smaller than those of farming groups, this initiative empowers women entrepreneurs in the fisheries sector, addressing gender disparities.Fourthly, fishermen's adoption of fish finder technology has led to substantial time efficiency, equivalent to 3,443 hours of travel time, and fuel cost savings amounting to IDR 22,844,482.This time, fossil fuel efficiency also reduces potential carbon emissions by 9.22 tons of CO2e, contributing to a cleaner marine environment.Fifthly, integrating solar panels with quail cages has produced 3,579 kWh of electricity, significantly reducing carbon emissions by 3.189 tons of CO2e compared to conventional electricity sources.Additionally, this initiative saves IDR 1,485,285, demonstrating renewable energy adoption's economic and environmental benefits.Sixthly, introducing the "Betuah Green Laundry" initiative, which processes 35,490 liters of laundry waste, promotes environmental sustainability by preventing pollution, and has an economic value of IDR 51,930,000.Sixthly, introducing the "Betuah Green Laundry" initiative, which processes 35,490 liters of laundry waste, promotes environmental sustainability by preventing pollution, and has an economic value of IDR 51,930,000.
Empowering coastal communities through quail farming and inland fisheries offers an alternative livelihood and social safety net for vulnerable coastal populations, addressing some of the socioeconomic challenges they face.However, based on some evidence, this well-intentioned approach inadvertently generates different emissions from the farming practices employed [11].Despite KPI's efforts to encourage coastal communities to manage these farming wastes, not all waste can be optimally controlled or mitigated, indicating the presence of certain limitations in their implementation.Moreover, this study has its constraints in terms of scope and data sources, primarily focusing on coastal communities being supported by the company through CSR initiatives.Furthermore, the primary data source for this research mainly consists of documents and reports published by the company, implying some limitations regarding the comprehensiveness of data collection.
Consequently, there is a clear need for further research to assess the effectiveness of CSR initiatives in achieving sustainable production processes and to develop more environmentally friendly farming practices capable of mitigating climate change impacts.Additionally, government support in issuing guidelines and assisting coastal communities, proposed by several studies [12], is imperative to enhance their preparedness in the face of climate change challenges.This comprehensive approach combining research, sustainable practices, and government intervention is essential to ensure coastal communities' long-term sustainability while minimizing their activities' environmental impact.

Conclusion
Coastal communities have faced an array of challenges stemming from climate change impacts.These challenges include the deteriorating livelihoods of fishermen due to changing environmental conditions and restrictive regulations such as Kepmenhub No. 819, which limits fishing activities in certain zones.Consequently, some fishermen have taken high-risk and illegal endeavors to sustain their families.At the same time, the younger generation must exhibit a higher interest in pursuing a career at sea.Dumai Minapolitan has undertaken a multifaceted approach to transform coastal communities, and the quantitative data further underscores its impact.The program has resulted in substantial cost savings, totaling IDR 59,199,167 while increasing community income by an impressive IDR 360,947,840.Additionally, it has harnessed 2,634,490 liters of aquaculture and laundry wastewater for productive use, effectively managed 744 kg of household waste, and generated 3,579 kWh of renewable energy.Most notably, the program has contributed to the prevention of 12.77 tons of CO2e emissions, reducing the carbon footprint of these communities.
These quantitative achievements complement the qualitative benefits, highlighting that Dumai Minapolitan's CSR initiatives have offered economic opportunities and contributed to social empowerment and environmental sustainability.The transformation of these coastal communities into adaptive entities capable of confronting the challenges posed by climate change has been further solidified, ensuring long-term resilience and well-being.
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Table 1 .
Economic and Environmental Outcomes of CSR Initiatives.