Gulf Indonesia Giving all its best for mutual interdependence<\/p>\n
Having been one of the few multinational firms to establish
\ntransparent win-win relationships with local communities and
\ngovernments in its operational areas and surrounds, Gulf
\nIndonesia Resources has pledged to continue efforts to share its
\nsuccess with locals.<\/p>\n
"We look at our community development programs in two ways.
\nFirst, they're a part of our corporation's social
\nresponsibilities, and secondly -- for our own interests -- we
\nwant to continue building a mutually beneficial and
\ninterdependent relationship between our company and the
\ncommunities and local governments in those areas where our
\nbusiness operates," S. Santosa, Gulf Indonesia's vice president
\nfor corporate strategic development and government relations,
\nsaid.<\/p>\n
"Without such a good relationship, we cannot create a stable
\nenvironment to work in," he said.<\/p>\n
"And the local people are able to see that our presence on
\ntheir land is also useful for them."<\/p>\n
Gulf Indonesia, which marked its 41st anniversary of
\noperations in the country this year, operates a variety of
\ncommunity development programs, from education to health,
\ncultural activities, farming and infrastructure development.<\/p>\n
Local people and authorities in its operational areas,
\nparticularly in the Musi Banyu Asin district of South Sumatra,
\nhave witnessed and benefited from the company's assistance, such
\nas scholarships, training, free medical services and the
\nconstruction of schools, prayer houses, roads and wells.<\/p>\n
Each year the firm, which has been 72 percent owned by Conoco
\nsince September 2001 and has the remaining 28 percent of its
\nequity listed on the New York Stock Exchange, spends some US$1
\nmillion on community development programs.<\/p>\n
"We hope that we can build ongoing positive relationships with
\nlocal residents, intellectuals and local authorities, starting
\nwith those at the subdistrict level and working up to
\nmunicipalities and provincial offices," Santosa explained. "We
\nalso need to work with local intellectuals as they play a
\nsignificant role in shaping public opinion."<\/p>\n
An independent upstream company engaged in the exploration,
\ndevelopment and production of oil and gas resources, Gulf
\nIndonesia operates under a production-sharing agreement with
\nPertamina in three core regions: Sumatra, the Natuna Sea and East
\nJava.<\/p>\n
According to Santosa, Gulf Indonesia's community development
\nprograms cover three major sectors, namely education, economic
\nempowerment for local communities and the development of social
\ninfrastructure.<\/p>\n
"Education is our top priority since it's very important for
\nthe future of the locals," he said.<\/p>\n
In 2001 alone, the company participated in building a number
\nof schools and a school dormitory, and provided scholarships to
\n4,000 students from primary to high school level, and similar
\nfinancial assistance for university students, including those
\npreparing for final exams.<\/p>\n
"Also, we provide an honorarium to teachers in remote areas
\nwho fail to receive payments from the government," Santosa added.<\/p>\n
To help boost local economies, the firm has over the past two
\nyears sponsored on-the-job training for some 80 locals in
\nSukabumi in Bogor, West Java, in the fields of farming and animal
\nhusbandry.<\/p>\n
"Under the supervision of senior tutors in Bogor, they learned
\nmany things related to agriculture, such as how to farm, run a
\nfish pond, and raise chickens and goats," Santosa said. "From
\nthere, we then provided them with some initial working capital to
\nstart their own businesses. And it works, with a success rate of
\naround 70 percent."<\/p>\n
The well-trained locals not only employ others, but also
\nindirectly share their knowledge and know-how with neighbors,
\nfriends and other villagers, he said.<\/p>\n
In a similar vein, the company sponsored 20 local women to
\nparticipate in sewing classes.<\/p>\n
"We hope that this group can one day handle the procurement of
\nour uniforms," he explained.<\/p>\n
Santosa said that Gulf Indonesia was of course unable to
\nprovide jobs to everyone in a village. "But we always try to
\ngenerate self-employment for them and we -- in cooperation with
\nvarious parties, including intellectuals from Sriwijaya
\nUniversity -- are still looking for appropriate methods."<\/p>\n
In 2002, for instance, Gulf Indonesia hopes to train a group
\nof local farmers to breed bees and improve their techniques in
\nplanting rubber trees, oil palms and snake-skin fruit.<\/p>\n
"We also plan to introduce home industry businesses to the
\nvillagers since we realize that not all of them, who come from
\ndifferent backgrounds and cultures, have an interest in
\nagriculture," Santosa noted.<\/p>\n
Apart from its regular programs, the firm also arranges a kind
\nof MOU with locals, including the authorities, leading figures
\nand youths, in which the villagers assume responsibility for
\nhelping secure Gulf Indonesia's assets and operations in the
\nareas concerned.<\/p>\n
In return, the company will meet the locals' requests, such as
\nfor the construction of a school or a mosque.<\/p>\n
"We see it as a mutual commitment," Santosa said, adding that
\nin 2001 his firm had signed MOUs with five villages. "Our
\noperational areas are so large and scattered that we can not
\nhandle them on our own. The MOUs will give villagers a sense of
\nownership over our assets and will therefore encourage them to
\nhelp secure our property against outsiders."<\/p>\n
For local administrations, Gulf Indonesia regularly funds
\ntraining for five staff members at a time at the firm's
\nheadquarters in Jakarta, where they learn about the oil business,
\ncontracts, accounting systems and local share arrangements.<\/p>\n
"We often hold seminars for them. We want the local
\nadministrations to see us as an open and transparent company,"
\nSantosa went on. "We have nothing to hide"<\/p>\n
"From our side, we just want them to be our partners," he
\nsaid.<\/p>\n
T.M. Razief Fitri, the firm's service and external manager,
\nadded: "We find the scheme works very well since all our wells
\nand pipes are safe. There's no oil being stolen."<\/p>\n
Santosa said that the programs would be expanded this year.<\/p>\n
Throughout most of its history, Gulf Indonesia had been a
\ncrude oil producer but branched out into natural gas production
\nwhen it opened its Corridor Gas Project in South Sumatra in
\nOctober 1998.<\/p>\n
The company, which was previously 72 percent owned by Gulf
\nCanada Resources Limited, currently has interests encompassing 11
\nmillion gross acres in 13 onshore and offshore contact areas in
\nAceh, Jambi, South Sumatra, Natuna, and several spots in the
\neastern part of Java and near Lombok.<\/p>\n
Besides South Sumatra, Jambi and Natuna, the other areas are
\nstill under exploration.<\/p>\n
Its total daily production reaches 33,000 million barrels of
\noil and 280 million cubic feet of gas.<\/p>\n
"We're a growing company, with our production estimated to
\ndouble in the next three or four years, partly due to the massive
\nsales of our gas," Santosa said.<\/p>\n
Headquarters:
\n Wisma 46, Kota BNI,
\n 29th floor
\n Jl Sudirman Kav. 1,
\n Jakarta 10220
\n Telp: (021) 574 2120
\n Fax: (021) 574 2122
\n e-mail:<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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