The effect of community and company participation and implementation of good forest fire governance on the forest fire policy in Indonesia

Abstract

Purpose The purpose of this research is to analyze the effect of community and company participation on corporate governance and forest fire prevention in the forest zone, which has a high level of vulnerability to forest fires, in Indonesia. Design/methodology/approach The survey method in this research used a quantitative approach with the survey method, with the sample being forest areas having a high level of vulnerability to forest fires in Indonesia. This study used a questionnaire instrument and was conducted from January to March 2017. The research population was 105 villages located in forest areas in six major provinces known to endure the largest forest fires in Indonesia. From a total population of 258 villages, 52 were selected for this study. The proportional random sampling area technique was used. The data analysis methods selected in this research were descriptive analysis and inferential statistical analysis using the partial least squares method. Findings Community and company participation has a significant effect on the implementation of good governance. The implementation of good governance has a significant effect and community and company participation has no direct effect on the forest fire policy, but through good governance mediation, an indirect effect of community participation on the forest fire policy is seen. Originality/value No previous research has comprehensively studied the role of community and company participation and implementation of good forest fire governance on the forest fire policy.