PERSONAL INFLUENCE MODEL OF PUBLIC RELATIONS: A CASE STUDY IN INDONESIA’S MINING INDUSTRY

Yudarwati, Gregoria Arum (2009) PERSONAL INFLUENCE MODEL OF PUBLIC RELATIONS: A CASE STUDY IN INDONESIA’S MINING INDUSTRY. Pearson Paravia Bruno Mondadori S.p.A. ISBN 978 88 7192 603 2

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Abstract

This article seeks to better understand public relations functions in Indonesia during the post-Suharto era by examining public relations functions in the Indonesia’s mining industry. The study found that the socio-political changes in the post Suharto era have resulted in the need for the mining companies studied to implement a new management approach when dealing with stakeholders. Factors which encouraged the company to establish an independent division designed to perform public relations functions include a multicultural environment, increasing number of social conflicts between management and communities, decentralised government policy, transparency, and freedom of the press. The existing public relations function, however, focuses more on relationships with communities, which include local governments, local media, and local ethnic groups. The personal influence model is predominantly carried out to approach communities. The companies assign field officers to build personal communications and relationships with key actors in the community to seek favours when the company needs them. This interpersonal relation aims to build trust between the companies and communities. This personal relations approach is based on a cultural variable of power distance. Indonesia has a high power distance index which has resulted in a low level of trust. The personal relationships with key actors are also undertaken due to the strong collectivism values of ethnic groups who live around mining companies. Collective culture stresses the group goals over the personal goals, and that individuals are more likely to be attached to their leaders. A cultural interpreter model is adhered to understand this cultural value. The companies assign field officers with an understanding of the cultural differences. Personal relationship with key persons in the local government is also performed to avoid difficulty in managing legal issues and to build good cooperation instead of being exploited in doing community development programs. In addition, the companies extend personal networks with media professionals to bring more benefit to the companies, especially in minimising unfavourable media coverage. In spite of this, the existing public relations function is a supporting tool rather than an integrated communication function, as it is integrated into the division responsible for corporate social responsibility functions. Finally, this paper asserts that the companies practice public relations as they do because the dominant coalition chooses to organise and manage in that way, in order to secure business.

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