Public relations functions in the Indonesian mining industry in the post Suharto era

Yudarwati, Gregoria Arum (2008) Public relations functions in the Indonesian mining industry in the post Suharto era. In: ANZCA08 Conference, Power and Place, 9 -11 July 2008, Wellington, New Zealand.

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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 a privately-owned Indonesian mining company. The study found that the socio-political changes in the post-Suharto era have resulted in the need for the mining company 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. Because of the multicultural environment, management predominantly uses the cultural interpreter model of public relations. In this model the company assigns field officers with an understanding of the cultural differences to approach and communicate with its members. The personal influence model is also found. Field officers build personal communications and relationships with key actors in the community to seek favours when the company needs them. 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. The company claims that this division has a section which carries out public relations functions formally. However, this section’s main function is limited to media relations, guest relations and publications only. This section mainly performs the press agentry and publicity model and the public information model of public relations. Finally, this paper asserts that the public relations functions operating in this company aim to secure business and promote a good corporate image, for the purpose of attracting more investors.

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