Measuring the Social Value of an Integrated Circular-Economy Community Empowerment Program: A Social Return on Investment Study of SIKOK SELINGKAR in Prabumulih

Abstract

Corporate social investment is increasingly required to demonstrate more than program outputs, with greater emphasis placed on measurable social, economic, environmental, and well-being impacts. This study examines the SIKOK SELINGKAR (Sistem Komunitas Karet Organik dalam Satu Rantai Daur Ulang) social innovation program implemented by PT Pertamina EP Prabumulih Field in Prabumulih City, South Sumatra, Indonesia. The initiative brings together three community-based subprograms MUDA BERSAMA, RINDU RESIK, and MOKUSAKU that collectively connect household organic waste management, residual plastic recycling, rubber-farming innovation, biomass utilization, women’s empowerment, and local livelihood development. The study employed a mixed-method Social Return on Investment (SROI) framework. Fieldwork was conducted in September 2025 in Patih Galung, Muara Dua, and Sungai Medang. Primary data was obtained direct field observations as well as in-depth and semi-structured interviews with purposively selected community stakeholders. Secondary information was drawn from corporate implementation reports, social innovation documentation, community profiles, and program financial records. The analysis used an impact-map sequence from inputs to outputs, outcomes, impact fixation, monetization, and SROI calculation. To reduce the risk of overstating program impacts, the analysis incorporated deadweight, attribution, drop-off, and displacement adjustments. During 2022–2025, the program recorded a nominal social investment of IDR 1.6897 billion. Following adjustment to 2025 value, the investment was estimated at IDR 1.7775 billion, while the corresponding adjusted benefits reached IDR 2.8089 billion, resulting in an overall SROI ratio of 1.58. Among the three subprograms, RINDU RESIK contributed the largest share of monetized outcomes at 64.87%, followed by MUDA BERSAMA at 30.47% and MOKUSAKU at 4.65%. Preliminary sensitivity analysis using the reported figures further indicates that the SROI ratio remains above 1 when alternative adjustment conventions and moderate decreases in benefit values are applied. In addition to the outcomes that could be expressed in monetary terms, the program contributed to a range of intangible changes, including improvements in technical skills, institutional capacity, self-confidence, social cohesion, environmental awareness, and collaborative governance. These findings indicate that an integrated circular-economy approach can generate social value when material recovery, local production, livelihood diversification, and community institutions are brought together under a coherent theory of change. The study further emphasizes that conservative valuation practices, transparent assumptions, and sustained longitudinal monitoring are essential for enhancing the reliability and credibility of SROI-based evaluations of corporate social responsibility initiatives.