CENTRALISED REGULATION AND LOCALISED CRISIS: GOVERNANCE DYNAMICS IN THE STEAM POWER PLANT (PLTU) IN INDRAMAYU, INDONESIA

Abstract

This study investigates the governance dynamics of sustainable development through a case study of the steam power plant (PLTU) in Indramayu, West Java. As part of a national strategic project, the PLTU has triggered significant environmental impacts on local communities and ecosystems. However, the enactment of the 2020 Job Creation Law (UU Cipta Kerja) has curtailed the authority of the Indramayu Regency Government in environmental oversight, weakening local responses to the crisis. This research employs a qualitative approach, utilising a single case study design and a theoretical framework that integrates environmental governance and multi-level governance. Data were obtained through in-depth interviews and analyses of public reports. The findings demonstrate tha the authority of the district government has been eroded due to the centralisation of regulations following the enactment of the Job Creation Law. Furthermore, it demonstrated how corporate social responsibility funds channelled by state-owned enterprises (Badan Usaha Milik Negara - BUMN) not target the real needs of affected residents. Thirdly, Local Government Budget (Anggaran Pendapatan dan Belanja Daearah - APBD) allocations predominantly target short-term responses to environmental impacts, rather than addressing the underlying causes of these problems. The study puts forward a series of recommendations, including revisions to the environmental aspects of the Job Creation Law, improvements to CSR mechanisms based on community participation, and the adoption of collaborative governance models across various actors. The findings emphasise the significance of establishing congruence between national policies and local requirements to achieve ecological justice and politically and institutionally sustainable development.