Bechtel develops human resources for expansion

JAKARTA (JP): Engineering and construction company Bechtel of the United States sees the improvement of local human resources as an important factor in its continued expansion in Indonesia.

Bechtel's Indonesia country manager Dick Erskine said skilled workers were essential in a company's ability to meet market demand.

He acknowledged the Indonesian economy was currently facing many problems, but believed the country had the best footing for an early recovery.

Bechtel has been active in Indonesia for 46 years and is involved in a number of pioneering projects including the construction of the first liquefied natural gas (LNG) plant at the Badak field, East Kalimantan and LNG plants in Arun, Aceh.

Bechtel recently introduced the Bechtel Foundation in Indonesia to help educate students in certain fields. The foundation provides annual grants to several local universities, including the Bandung Technology Institute, for the development of engineering and technology studies.

Erskine said Bechtel would provide chances to their students to temporarily or permanently work for Bechtel to learn its latest engineering and construction technology.

"We shall certainly benefit from this measure as it will provide us with new graduates who are capable in using our latest technology," he said.

The company had invested US$100,000, three times larger than last year, to train its local engineers this year. Another $400,000 would be used to install a computer network in its Jakarta's office on line with Bechtel's global network.

The global computerized connection enabled local engineers to instantly access Bechtel's latest technology worldwide, he said.

"For banking corporations, a global computerized connection is certainly an ordinary thing. But for engineering companies, it is really extraordinary," Erskine said.

Erskine said its human resource development program was part of Bechtel's global policy to "regionalize" its operations by employing only local people.

"In the future, we (Bechtel's subsidiary in Indonesia) will become an Indonesian company managed by Indonesians," Erskine said.

Opportunity

Erskine said the current economic crisis had a short-term impact on the engineering and construction business in Indonesia but noted that several business sectors would continue to grow in the near term.

"We have done a quick analysis of the market to see where the near-term continued growth would be. Mining and metals, petroleum and petrochemicals, telecommunications, and pulp and paper look to us to be strong in the near term," Erskine said.

He said Bechtel was eying business opportunities in those sectors.

Bechtel was currently constructing an aromatics plant in Aceh for PT Humpuss and a carbon disulfide plant in Cikampek, West Java for Akzo Nobel. It also was installing 370,000 telephone lines in West Java for PT Aria West and was involved in the expansion of PT Freeport's copper mill in Irian Jaya, he said.

Aside from seeking business opportunities in engineering and construction, Bechtel was also seeking to invest in small power plants in the country through its subsidiary Energy Works, in large power plants through its subsidiary InterGen, and in drinking water products through International Water Limited.

Bechtel had a 50 percent stake in each of the three companies, he added.

Bechtel had also set up a construction and engineering joint venture with the state-owned oil and gas company Pertamina -- PT Purna Bina Indonesia -- with 22 percent of the shares owned by Pertamina and 78 percent by Bechtel. (jsk)