[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 Photo yg akan dipakai:
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.