[b]Checked, please remember to fill in figures (bold),

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Advertorial: Pertamina

Title:
- Pertamina CSR Program: Prospering together with the people
- Pertamina CSR Program: Living in harmony with the people
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1. Bantuan mesin perahu --Papua
2. Penyerahan Kredit PUKK UPMS, NTB
3. Bantuan air bersih

Today, corporations are facing growing pressure from
stakeholders, investors, consumers and even local communities to
play a more active role in dealing with social problems, which
were once thought to be the government's sole responsibility.

The reputation and success of a corporation are no longer
measured merely by its financial performance, but also by its
commitment to the promotion of human rights, business ethics,
environmental protection, as well as community development.

This might explain why the concept of Corporate Social
Responsibility (CSR) has become a key element in business
practices today.

For state oil and gas company Pertamina, the CSR concept has
become an integral part of its business strategy. Pertamina's CSR
is partly implemented through an integrated community development
program, which not only focuses on education and health services,
but also on the development of public infrastructure and the
empowerment of the local people's economy, either through a
business partnership program or financial aid.

Pertamina's strong commitment to promoting the welfare of
local people can be seen in the continued increase of its
community development budget. This year alone, the company has
allocated Rp ....... to finance community development projects in
the country. This figure reflects a significant increase from
Rp ..... in 2003.

The state oil and gas company's corporate responsibility
programs are generally divided into four categories, comprising
education, health, conservation and rural development.

Pertamina's Marketing Unit V Surabaya, for example, has
allocated more than Rp 52 billion for its community development
programs during the past 10 years.

Of the total, about Rp 51 billion were allocated as soft loans
to small-scale business partners in East Java, Bali, East Nusa
Tenggara and West Nusa Tenggara provinces.

Pertamina Surabaya has also provided scholarships for 2,315
elementary and high school students as part of the company's Be
Smart With Pertamina program.

In maintaining a good relationship with the local people,
Pertamina's business unit in Dumai, Riau has also carried out a
number of community development programs.

During the period between 2000 and 2003, the Pertamina Dumai
spent a total of Rp 5.40 billion for community development
projects.

In 2003, Pertamina Dumai spent about Rp 1.8 billion. About Rp
835.04 million of the total funds were allocated for the
construction of a soccer field in Dumai.

Pertamina's community development programs are also
implemented by its geothermal operation unit in Kamojang, West
Java. This unit has built a water pipe to enable poor residents
in the area to get clean water. In addition, Pertamina Kamojang
has also built an asphalt road linking Sukakarya village and
Semarang. With the new road, villagers living in Sukakarya and
two other villages can easily access the city .

These projects are only a small part of the community
development activities Pertamina has implemented nationwide. The
state oil and gas company's business unit is allowed to choose
what kinds of community programs suit the needs of communities in
their vicinity. However, they have to follow the general
guidelines set by the company's headquarters in Jakarta.

Pertamina's community development programs are based on the
following principles:

- All Pertamina's business units should be highly committed to
the implementation of community development in their respective
areas.

- Community development programs should be designed to meet the
real needs of people living in surrounding communities.

- Community development programs should provide mutual benefits,
both for Pertamina and the community.

- Community development programs should aim to improve the social
welfare of the people.

- Community development should not be politically motivated.

With such guidelines, Pertamina hopes that all community
development programs carried out by its operation units in the
country will be able improve the living conditions of the people
living near its exploration and production areas.

For Pertamina, the corporate social responsibility (CSR)
program is not merely implemented as its reaction toward the more
demanding stakeholders. More importantly, this program has
effectively helped Pertamina to fulfill its social mission that
is to prosper and grow together with the people.