Bechtel develops human resources for expansion

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)