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Jakarta Post

Oil and gas firms aim to grow together with local communities in CSR outreach

Complaints and criticism are only to be expected when it comes to oil and gas producers and the huge revenues they gain from the nation's natural resources

Sudibyo M. Wiradji (The Jakarta Post)
Jakarta
Tue, May 21, 2013 Published on May. 21, 2013 Published on 2013-05-21T11:17:35+07:00

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C

omplaints and criticism are only to be expected when it comes to oil and gas producers and the huge revenues they gain from the nation's natural resources.

The companies are sensitive to the criticism, and are doing their part to show that they are also giving back and making a positive difference in local communities in their areas of operation. During the 37th Indonesian Petroleum Association Convention and Exhibition (IPA Convex), held May 15-17 at the Jakarta Convention Center, this commitment to growing together was in evidence at a special CSR exhibit held for the first time.

The message is that their CSR commitment is not simply an idle slogan or bombastic buzzword, but a strategy for sustainability.

 A welcome sign greeted visitors to the 'Suka Maju Village' (literally, 'liking progress'), located in a spacious hallway area at the center. Amid a rustic, simple atmosphere ' with rattan tables and benches and dim lighting ' the exhibition hosted an assortment of booths displaying various CSR projects in remote villages across the nation, from Cepu in Central Java to eastern areas.

There was an array of products on display: snack foods, ikat and batik cloth, bags and handicrafts made from natural materials. All were produced by the beneficiaries of economic empowerment CSR programs, as outlined in the posters, brochures, leaflets and other materials at the venue.

On hand at many of the booths were the CSR recipients themselves to talk about how the assistance has benefited their lives through their small and medium enterprises (SMEs).

One of them was Salim from Sampang regency, Madura, East Java. A pedicab driver, he embarked on a new venture of running a restaurant in his village of Taddan in 1999. Featuring his version of the local specialty bebek songkem ' steamed duck seasoned with red chili and garlic ' his venture is supported by Santos Indonesia, the subsidiary of Australia-based energy company Santos that operates in Oyong field of the Sampang block.

The father of three credited assistance from Santos in 2012 in the form of production tools, including gas stoves and blenders, for helping his business grow significantly with increased production capacity. The knock-on effect of the growth of his business also helps other villagers.

'Previously I only had two employees, with around 25 ducks handled per day, but now I have 25 employees, most of whom are female villagers, with around 300 ducks handled daily,' he said.

His restaurants are now spreading outside of Madura to other parts of the province.

'Currently we have 12 outlets, including ones in Surabaya, Jember, Madiun and Sidoarjo. We'll soon open new ones in Bangil, the vicinity of south Malang, Gresik and north Pamekasan,' he said with a broad smile.

'Through the SMEs partnership program under the CSR initiative, we encourage SMEs to grow based on their own potential and according to their needs,' said Santos' community development coordinator Feyzul Athir.

Change of fate

Warsih, from Muaratua village, Anggan, Kutai Kartanegara regency in East Kalimantan is also reaping the benefits of CSR outreach.

The mother of one produces Krupuk Amplang fish-flavored crackers, and is one of the beneficiaries of the CSR programs run by France-based Total E&P Indonesie operating in the province's South Mahakam field of the Mahakam block.

When she started her home industry six years ago, she only had three employees, with turnover of Rp 500,000 (US$51) per month. Today, after receiving assistance, earnings have risen to Rp 3 million per month; she also sells her products outside of the province.

'I am pleased that my business has grown. Besides assistance in the form of production tools, the company also helps me market my products, including in participating in the exhibition,' she said.

'In gaining this opportunity to take part in the exhibition in which similar products by different SMEs were on display, hopefully I can improve the quality of my products.'

Salim and Warsih are among the thousands, perhaps millions, of beneficiaries of economic empowerment-related CSR programs run by different oil and gas companies operating in Sumatra, Kalimantan, Sulawesi, Maluku and West Papua.

The CSR initiatives also cover other areas of society, including education, health, traditional culture preservation and environmental conservation.'

'We have here several students who have received scholarships from our company,' said an assistant of British oil and gas giant BP booth.

Meanwhile, US-based Chevron, the leading crude oil producer in Indonesia, has trained as many as 30 women, made up of housewives and several young female school dropouts, to make Riau Batik in Rumbai, Pekanbaru, Riau as of April 2013.

Beneficiaries of the training program receive assistance in the form of an introduction to batik equipment, batik making techniques, coloring technique and the establishment of cooperatives for the marketing in the future.

'The training participants are now capable to make various handicrafts using batik motifs, such as cloths, bags and sholat (prayer) accessories,' Chevron said in its leaflet.

The Batik Riau training program kicked off in October 2012, with participants coming from 11 sub-districts, Rumbai district and Rumbai Pesisir district, Kota Pekanbaru, Riau.

The participants have also received a special training to develop their skill in enhancing the value of batik that they produce in the post-production phase. 'In the long-term, the empowerment program is expected to boost the level of locals' welfare and preserve the nation's cultural heritage,' Chevron said.

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