Towards sustainable economic development through corporate social responsibility program with small medium enterprises in Indonesia / Lutfia Nurul Hidayati, Ary Miftakhul Huda and Merintha Suryapuspita

Corporate social responsibility (CSR) is where companies set aside a particular portion of their profits for the benefit of human development and environment in a sustainable manner. Its concept generally states that company’s responsibility is not only to its owners or shareholders, but also to other relevant stakeholders affected by its activities. CSR projects began in Indonesia following the passage of Article 74 paragraph 1 of Law no. 40 of 2007 on Limited Liability Companies and Article 15 letter (b) of Law Number 25 Year 2007 regarding Capital Investment. PT. Indofood SuksesMakmurTbk is one of the companies actively implementing CSR programs which focus on building human capital and strengthening economic value. The aim of this study is to analyze the impact of the company’s CSR programs towards economic development by looking at the Kampung Kue SME project in, Surabaya. This research conducted qualitative descriptive method to scrutinize the impacts following the CSR program in Kampung Kue. Data collection techniques include in-depth interviews and documentation while data analysis was carried out using interactive model analysis strategy. The results showed that the products by Kampung Kue were successfully developed. Hence, it strengthen the economy of the society. To create economic sustainability and reduce poverty levels, beneficial collaborations are conducted between the government, companies, and the community. It is expected that the practice of CSR can be improved by looking at various aspects that are developing for the betterment of the community.