As stated by the Act of Oil and Gas, exploring companies are obliged to perform a community development. These companies, however, instead of bring the prosperity for the society, they reduce the opportunity for the people on making a living since there are no more job oportunities, resulting in the rate of poverty increasing. Based on this matter, this study aims to answer: why the community development is necessary, and how the implementation of the community development can be executed effectively, efficiently and right on target. The study is performed by using the descriptive-qualitative method. Result reveals that the content of the policy is contrary to the spirit of good governance and good corporate governance. The recovery cost affects to the low fund of the community development, the implementation of the community development is not yet structured, and the society's prosperity deteriorates. The “given” policy formulation, in which foreign needs to be involved, implicates the state authorization in a fragile condition so that the state is not able to preserve the defense and the sovereignty of energy. Instead, it marginalizes and divides the local communities.