{
    "success": true,
    "data": {
        "id": 1285707,
        "msgid": "oil-colonies-spring-up-where-wells-gush-1447893297",
        "date": "2000-12-10 00:00:00",
        "title": "'Oil Colonies' spring up where wells gush",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "'Oil Colonies' spring up where wells gush By Raja Isyam Azwar Riau has long been famous for its oil, a major source of foreign exchange for Indonesia, which in turn has made it a point of urbanization. As in other places, this source of black gold is a bonanza attracting people from the world over, making the quiet area quite a busy center of industry. Colonization as a consequence of the oil industry does indeed have an extraordinary impact on the oil-rich areas.",
        "content": "<p>'Oil Colonies' spring up where wells gush<\/p>\n<p>By Raja Isyam Azwar<\/p>\n<p>Riau has long been famous for its oil, a major source of<br>\nforeign exchange for Indonesia, which in turn has made it a point<br>\nof urbanization. As in other places, this source of black gold is<br>\na bonanza attracting people from the world over, making the quiet<br>\narea quite a busy center of industry.<\/p>\n<p>Colonization as a consequence of the oil industry does indeed<br>\nhave an extraordinary impact on the oil-rich areas. Oil<br>\nexploitation concentration areas such as Rumbai, Minas, Duri and<br>\nDumai are developing rapidly.<\/p>\n<p>Population growth is rapid. Duri City (subdistrict of Mandau,<br>\nBengkalis) and Minas (subdistrict of Minas, Siak) are extreme<br>\nexamples of this population boom. In 1990 Minas' population was<br>\n23,400 but in 2000, it has more than doubled to 48,000 people.<\/p>\n<p>As has Duri. Its population has nearly doubled from 104,000 in<br>\n1990 to 195,000 in 2000.<\/p>\n<p>One of public figures of Mandau, H. Mohd Khotbah Arrofie,<br>\nsaid, \"Previously, the forest was priceless in Sebanga (a Duri<br>\nsuburb). But now there is no forest let alone empty land. If<br>\nthere is, the price is very exorbitant.\"<\/p>\n<p>Minas and Duri have develop rapidly, with markets, shopping<br>\ncenters and office buildings mushrooming.<\/p>\n<p>Other areas following their lead are Rumbai and Dumai.<br>\nAlthough not as rapidly as the two areas above, the existence of<br>\noil exploitation increases economic growth of the surrounding<br>\nareas.<\/p>\n<p>Quantity<\/p>\n<p>There is a great number of oil workers in Riau. Most of them<br>\nare employed by PT Caltex Pacific Indonesia (CPI) -- about<br>\n28,000. The remainder are employed by smaller companies, such as<br>\nKondur Petroleum (500 employees), Conoco and Expand.<\/p>\n<p>PT CPI Vice President Corporate Human Resources Suwito Anggoro<br>\nsaid, \"Total permanent workers number 5,800, contract workers<br>\n24,000 and service-type contract workers 3,000 on average.\"<\/p>\n<p>Education-wise, 2,700 are graduates, 4,600 undergraduates and<br>\nthe remainder senior high school graduates.<\/p>\n<p>Suwito said that most workers are posted at Duri, which has a<br>\nfield with a very large well, producing 300,000 barrel per day,<br>\nand Bekasap field, which absorbs nearly 60 percent of PT CPI's<br>\nworkers (20,000). This is followed by Minas 20 percent, Rumbai 15<br>\npercent and Dumai 5 percent (Support Operation).<\/p>\n<p>Minas-Duri<\/p>\n<p>Oil workers have been found in Riau since the Dutch<br>\ncolonial era and continued during Japanese occupation. In 1924, a<br>\nconsortium of Socal and Texaco through PT CPI carried out a<br>\nsurvey and exploration around Minas and Duri.<\/p>\n<p>In the Balai Raja village, history of Duri activities in the<br>\noil sector can be seen from the local graveyard. According to<br>\nlocal elders, they were forced to build a road in the interest of<br>\noil exploration in this area.<\/p>\n<p>\"There have been many newcomers since 1943, mostly from Java,<br>\nWest Sumatra and North Sumatra,\" H. Mohd. Khotbah Arrafia said.<\/p>\n<p>In line with the fast-growing oil exploration in these two<br>\nareas, especially after the invention of \"giant\" oil fields in<br>\nDuri (Duri Field, 1941) and Minas (Minas Field, 1942), their<br>\npopulations increased rapidly. Statistical data indicates that<br>\ntheir growth rates have reached 7.88 percent for Minas and 6.66<br>\npercent for Mandau, Duri, annually. This is far above both Riau's<br>\naverage rate (3.79 percent) and the national rate (1.6 percent).<\/p>\n<p>The Central Bureau of Statistics in Riau (BPS Riau) Head of<br>\nPopulation Statistics, Togi Siahaan, said, \"The urbanization rate<br>\nis very high, much higher than the national one. It may match<br>\nBatam's record (12 percent, editor).\"<\/p>\n<p>In addition, oil exploration also has a significantly positive<br>\nimpact on the local people's economy (unfortunately BPS Riau has<br>\nnever recorded concrete data on this economic growth rate).<\/p>\n<p>However, as an illustration, oil-worker dissemination in Duri<br>\nmay serve as a model to describe the magnitude of the impact of<br>\noil exploration on surrounding areas. According to data from PT<br>\nCPI, 60 percent of its workers and contractors are concentrated<br>\nin Duri. Assuming that they spend 60 percent of their income for<br>\ntheir daily needs, total money circulating in the local market<br>\nreaches about Rp 18 billion to Rp 24 billion per month. This is<br>\nvery significant indeed for local economic growth.<\/p>\n<p>\"Generally, contractors rent their offices outside. They also<br>\ngo shopping at local stores. Stores and suppliers develop. Duri<br>\ndevelopment is 50 percent directly attributed to CPI's workers at<br>\nDuri,\" said Suwito.<\/p>\n<p>Kurau<\/p>\n<p>Different from Minas and Duri, oil exploration in Kurau<br>\nsubdistrict, Merbau, Bengkalis, and its surrounding areas does<br>\nnot seem to have a significant impact on regional development<br>\ngrowth. The mines concession area of 11,800 square km, managed by<br>\nPT Kondur Petroleum since 1970, seems not as strategic due to a<br>\nhard terrain dominated by peat areas and the sea.<\/p>\n<p>A very small production factor (only 15,000 barrels per day)<br>\nand limited workforce (about 500 employees) cannot yet give any<br>\nsignificant contribution to local development.<\/p>\n<p>Life of oil workers<\/p>\n<p>For laymen, the most prominent factor of oil workers is, of<br>\ncourse, their welfare. In general, they have a higher economic<br>\nlevel than workers in other sectors.<\/p>\n<p>However, from another point of view, the life of oil workers<br>\nis quite unique, especially that of site workers. A visit to the<br>\nexploitation area of PT Kondur Petroleum in Kurau gives a<br>\nportrait of their unique life.<\/p>\n<p>Site workers have very tight schedules. After working shifts<br>\nwhich can last weeks, they are off for two weeks. Working in<br>\nremote areas, in forests and at sea is challenging. They are<br>\npresented with basic human dilemmas. PT Kondur Petroleum Public<br>\nRelations staffer, Priyadi S. Budi said jokingly, \"Yes, it is<br>\nquite hard to be at site for a long time, far from family,<br>\nespecially for bachelors, they only see monkeys.\"<\/p>\n<p>This is even more so for employees posted at oil rigs<br>\nfacilities. PT Kondur Petroleum has its Ladinda, a supertanker<br>\nwith a capacity for 500,000 barrels, berthed at a bay. Employees<br>\nwork on board for two weeks (the writer was invited to spend a<br>\nnight there on July 31, 2000, and as soon as boarding, was given<br>\na detailed safety briefing, editor).<\/p>\n<p>\"Just imagine: eating, sleeping, working on top of thousands<br>\nof barrels of oil. But this is a job,\" said Priyadi, explaining<br>\nthe heavy psychological burden the employees may have to bear.<\/p>\n<p>Nonetheless, working in an oil company promises adequate pay.<br>\nAt staff levels, let alone higher levels, welfare is adequate. A<br>\nMelibur-Kuru processing staffer, Arif, said as much. \"Yes, it is<br>\nquite adequate. It is above Rp 1 million, depending upon the job<br>\nand position. For me, with one dependent, it is sufficient.\"<\/p>\n<p>Even a gardener at an oil company receives an adequate salary<br>\nif viewed from the average income in Indonesia. Edi, for example,<br>\nworking for a landscaper, one of PT CPI's contractors dealing<br>\nwith the company's premise cleanliness, said that his income<br>\nreached Rp 650,000 per month.<\/p>\n<p>Expatriates<\/p>\n<p>Meanwhile, expatriate employees have a different lifestyle to<br>\nthe local workers. They earn much higher salaries.<\/p>\n<p>The number of expatriates is quite high. At PT CPI, there are<br>\n190 -- 80 of whom are contractors. They frequently hang around<br>\nthe city with their friends or family at weekends.<\/p>\n<p>Expatriates enjoy having dinner out in Riau and they usually<br>\nvisit special places or restaurants such as Rumah Makan Pondok<br>\nPatin, Pondok Gurih, Restoran Hotel Aryaduta, Hotel Mutiara<br>\nMerdeka and others.<\/p>\n<p>At PT CPI, they are expert staff and usually employed on a<br>\ncontract basis for an average of four years. Their employment is<br>\nbased on the framework of transfer of know-how and technology.<\/p>\n<p>Anthony Joseph Perez, one of expert staff seconded by Chevron<br>\nto PT CPI, working since 1998 in Rumbai-Camp enjoys his work very<br>\nmuch and catches interesting impression from his surrounding<br>\nenvironment.<\/p>\n<p>In reply to the writer's question, the man from Houston,<br>\nTexas, USA, said that he spent his spare time enjoying sports,<br>\nsuch as golf, bicycling and other recreational activities. \"We've<br>\nseen line racing in Kuantan Bay. Sometimes we go to Bukit Tinggi<br>\nand Lake Maninjau (in West Sumatra). Sometimes we spend the night<br>\nin one or several hotels in Pekanbaru and enjoy eating in<br>\nrestaurants,\" he said.<\/p>\n<p>In addition, he added, he and his friends frequently visit<br>\nlocal traditional events such as marriage ceremonies, sports<br>\ncompetitions and buy souvenirs.<\/p>\n<p>In his own words, the most interesting thing for Tony during<br>\nhis work in Riau is: \"There are many challenges associated with<br>\nworking in Riau, but I believe it is still the adventure that the<br>\nlocation adds to the work experience, which I find most<br>\ninteresting. We are challenged intellectually with the work<br>\nbecause of technological changes, differences in language and<br>\ncultural diversity and the impact of governmental and economic<br>\nchange. Finding a balance between these challenges means finding<br>\nharmony and a sense of satisfaction at the end of the day for<br>\nhaving met the challenge. Also, where else can one work with the<br>\nlatest technology and walk out of your office and see a jungle<br>\nand wild animals like monkeys and monitor lizards!<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/oil-colonies-spring-up-where-wells-gush-1447893297",
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    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
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