Hasundutan Regency, North Sumatra Province, Indonesia

Abstract

The rapidly population increasing in Indonesia forced the government to create more job opportunities. It was thought that the problem could be solved by developing timber estates in the forestry sector. The plantation effort in the form of HTIs (timber estates) only began in earnest in 1990. Most often, the development projects provide economic benefits and better living environment, but they also affect local people adversely. Social impact assessments help in understanding such impacts. The case study was conducted in North Sumatra Province in Indonesia and involved the stakeholders; they were local community, value chain actors, workers, and the society. This study aimed to assess the impacts of Toba Pulp Lestari tbk PT on local community social life and to develop the alternatives to overcome the conflicts happened between the local communities and the company. The impacts were measured based on six constructs of social impact within thirty eight of sub-construct. The result showed the first rank as the most important in the community life aspect was perceived well-being, and the second the most important was conservation the community resources occupying the second rank in pairwise comparison table.This study developed alternatives by suggesting Toba Pulp Lestari tbk PT to do environment impact analysis and social impact analysis.