An Impact Evaluation of Social Invesment Using Sroi Method: A Case Study of a Public Construction Project

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FORMOSA NEWS - Cirebon - Private Road Repairs Drive Triple Returns for Local Communities, Formosa News Evaluation Finds. A comprehensive social impact study reveals that corporate-led infrastructure repair delivers extensive economic rewards to regional communities. The collaborative study was conducted by Rindang Matoati, Dhewanendra Fortuna, Farida Ratna Dewi, and Eka Dasra Viana from IPB University, alongside Rindah Febriana Suryawati from Universitas Airlangga and Hewa Majeed Zanghana from Duhok Polytechnic University. Published in early 2026, the evaluation tracked the real-world performance of an infrastructure corporate social responsibility (CSR) project executed from mid-2021 through mid-2022. The findings show that corporate infrastructure spending acts as a major catalyst for village economic growth when public funding faces constraints.

Background: Public Budget Constraints Create Local Infrastructure Gaps
National road stability metrics across Indonesia saw a notable decline leading up to 2021. This nationwide drop stemmed from a necessary shifting of public funds toward pandemic mitigation and national economic recovery initiatives. Regional governments experienced severe budgetary limitations, forcing local village administrators to delay vital road maintenance. In areas like Jungjang Village, located in the Cirebon Regency of West Java, neglected road networks directly slowed down local commerce. Uneven, potholed pathways restricted public mobility, prolonged transit times, and raised vehicle maintenance expenditures for local commuters. Because public repair budgets remained constrained, private sector capital became a crucial alternative for restoring vital community lifelines.

Methodology: Quantifying Social Value Beyond Mere Financial Accounting
To measure the true efficacy of this corporate intervention, the research team employed the Social Return on Investment (SROI) framework. SROI functions by converting qualitative social, environmental, and economic outcomes into measurable monetary values. The researchers utilized a purposive, non-probability sampling methodology to survey a sample size of 99 distinct local respondents calculated using the Slovin formula. Data collection involved gathering secondary corporate financial sheets and collecting primary data through deep stakeholder interviews and targeted public questionnaires. The researchers mapped out localized impacts while carefully accounting for external variables through analytical filters known as "deadweight" and "attribution".

• Deadweight Calculations: Assessed what percentage of the positive changes would have occurred naturally even without the corporate intervention.
  
• Attribution Filtering: Calculated what proportion of the local economic improvements came directly from other external programs or separate regional parties.
  
• Discount Adjustments: Applied a baseline 3.5% discount rate, aligned with Bank Indonesia’s Repo Rate, to calculate the net present value of the accrued community benefits.
  

Key Findings: High Social Yields and Lower Household Expenses

The evaluation proved that the private infrastructure program yielded a highly favorable social return ratio of 3.6:1. This indicates that every single Indonesian Rupiah (IDR) allocated to road maintenance yielded IDR 3.60 in tangible socioeconomic value for the village ecosystem. An upfront private investment of IDR 133,420,000 generated an audited financial achievement value equal to IDR 483,829,014 for the community.
The total socio-economic value generated was distributed across several key areas:

• Reducing Family Expenses (58.6% of total impact): Commuters saved significant travel time and collectively lowered vehicle repair costs, specifically regarding automotive shock absorber wear and tear.
  
• Increased Community Business Turnover (21.7% of total impact): A total of 123 small storefronts and market businesses flanking the repaired pathways saw an average profit growth of IDR 196,266 per month due to better customer accessibility.
  
• Corporate Reputation Improvements (18.7% of total impact): Public goodwill and positive brand recognition increased toward the project developer.
  
• Local Governance Support (0.6% of total impact): Public criticism directed toward the Jungjang Village Government on digital platforms decreased as long-standing local infrastructure issues were resolved.
  
• Driving Safety and Comfort (0.4% of total impact): Pothole repairs led to a measurable drop in single-rider traffic accidents along the main trade pathways.
  

Implications and Real-World Impact
These findings provide a clear model for corporate leaders, urban planners, and regional policymakers. The data shows that when private companies fund infrastructure improvements near their project sites, it creates an effective development loop. For businesses, these investments are more than charitable donations; they actively reduce local social friction and build long-term corporate value. For regional governments, this model proves that public-private partnerships can effectively maintain public infrastructure during economic downturns. When private developers repair critical transit links, they help stabilize local economies, protect small business revenues, and reduce household costs for residents.

Author Profiles
Rindang Matoati, PhD (Cand.) Affiliation: IPB University, School of Business, Expertise: Corporate Social Responsibility, Social Impact Assessment, and Sustainable Development Management.
Rindah Febriana Suryawati, M.Si. Affiliation: Universitas Airlangga, Expertise: Financial Management, Corporate Governance, and Sustainability Accounting.
Hewa Majeed Zanghana, PhD Affiliation: Duhok Polytechnic University, Expertise: Public Infrastructure Evaluation and Global Development Economics.
Dhewanendra Fortuna, B.Bus. Affiliation: IPB University, Expertise: Data Analytics and Social Return on Investment Mapping.
Farida Ratna Dewi, MM Affiliation: IPB University, Expertise: Microeconomic Development and Business Strategy Evaluation.
Eka Dasra Viana, MSA Affiliation: IPB University, Expertise: Public Sector Accounting and Corporate Accountability Systems.

Sumber Penelitian
Rindang Matoati, Rindah Febriana Suryawati, Hewa Majeed Zanghana, Dhewanendra Fortuna, Farida Ratna Dewi, dan Eka Dasra Viana (2026), An Impact Evaluation of Social Invesment Using Sroi Method: A Case Study of a Public Construction Project, Formosa Journal of Applied Sciences (FJAS) 2026, Vol. 5, No. 2, Halaman 631-648.
DOI: https://doi.org/10.55927/fjas.v5i2.16
URL: https://journalfjas.my.id/index.php/fjas