What is the background of the Conflict Resolution Unit (CRU) initiative?

16 June 2019

The CRU initiative started from the understanding and awareness that conflicts over land and natural resources are unavoidable in business activities, which are dominated by an economic growth-oriented development paradigm. This development model tends to encourage production by expanding land in order to meet the increasing demand for raw materials in addition to technological innovations. This has resulted in an raising competition over land which is also triggered by an increase in population and increasing consumption demands. Another consequence of this intensive exploitation is environmental degradation which happens when the level of natural damage that occurred cannot be compensated by nature’s ability to recover.

This competition triggers rivalry among development actors and businesses at various production scales which if not managed and regulated properly have the potential to become conflicts or disputes. Conflicts are detrimental to all parties, regardless of their position and interests. If they cannot be controlled, conflicts will disrupt and even stop businesses and cause losses in the form of social, ecological and economic costs, as well as the loss of opportunities for the development of the business itself in the future.

For this reason, an effort is needed to reduce the risk of conflict and resolve it as an integral part of improving the governance of the production and consumption system of natural resources. The CRU was initiated by several KADIN figures as a contribution to efforts to improve the business and investment climate in Indonesia through conflict management programs, especially those based on land and natural resources.