For Advertorial, 13 August 2004
For Advertorial, 13 August 2004
PT Medco E&P Indonesia's Comdev program
'Providing the hook, not the fish'
As a private national oil and gas company, PT Medco E&P Indonesia (Medco E&P) has paid strong attention to improving the welfare of the people and preserving the environment surrounding its work areas since the early years of its operations.
Medco E&P, which changed its name from PT Exspan Nusantara in April 19, 2004, has made every possible effort to improve the quality of life of the people surrounding the company's operation sites.
This commitment is realized through the implementation of the company's Community Development (Comdev) Program, which covers a number of activities not only in education and health but also in the empowerment of the people's economy.
In order to effectively achieve its goals, Medco E&P carefully formulates its Comdev programs with the help of local administrations and community leaders. The involvement of local people is necessary to ensure that the programs can match the real needs of residents. With this approach, Medco E&P hopes its Comdev programs will not only meet the basic needs of the people, but will also enable them to become economically independent in the long term.
In the field of education, for example, besides providing educational facilities such as school buildings and laboratories, Medco E&P also offers scholarships to students from the elementary school level to the university level. In addition, the company also pays serious attention to improving the welfare of teachers.
A number of Comdev programs in the education field have been successfully implemented. Medco E&P has, for example, built a junior high school in Talang Ubi village in Muara Enim regency, South Sumatra, where a number of the company's operation sites are located. The company also built additional classrooms and a library at Talang Bonot Elementary School and Talang Air Guci Elementary School in Rambang Dangku district, Muara Enim, as well as providing a laboratory and all the supporting facilities at Sekayu High School in the regency.
A scholarship program is offered to students from elementary schools to the university level. In addition, the company has built Islamic schools for junior high school and high school students in Lais village, Musi Banyuasin (Muba) regency.
Medco E&P is also concerned with issues related to public health. In this field, besides offering free medical care and mass circumcisions, the company has provided financial aid for improvements at hospitals in Sekayu and Muara Enim, and has also donated a boat that can function as a mobile public health clinic for people living along the Musi River in Banyuasin regency.
The Empowerment of Small-Size Companies
One of the main priorities of Medco E&P's Comdev Program is to support the development of small businesses. In cooperation with local governments, the company provides revolving financial aid and management training for local farmers. The program has had good results. The life of Syaifuddin, a farmer in Lais village, Muba regency, for example, changed for the better after he joined the company's duck breeding program. He now has more than 1,000 ducks from only 100 ducks when he first joined the program. His monthly income has also increased from Rp 45,000 to Rp 500,000.
Another resident, carpenter Sugianto, who formerly made doors and chairs only, now produces cupboards, wooden decorations for wedding ceremonies and tables after receiving financial and technical assistance through the company's Comdev Program. Now he runs a furniture shop in Lubuklinggau and Muba, with a monthly income of more than Rp 1 million.
Medco E&P also assists fish farmers. At least 44 fish farmers in Lais and Sekayu, and 10 fish farmers in Petaling village, also in Muba regency, have benefited from the company's Comdev Program. With the help of the company, these farmers have been able to multiply their fish production.
Besides helping farmers, Medco E&P's Comdev Program also provides financial assistance to small-scale companies. In cooperation with its subsidiary PT Medco Inti Dinamika, Medco E&P runs a revolving loan program called Micro Finance Service (MFS). The program is currently open to small business owners such as grocers, vegetable sellers, carpenters, traditional bakers and barbers living near the company's Kaji oil field in Semogra district, Muba regency. This program has provided loans totaling Rp 96.60 million and has benefited at least 185 small business owners.
The company also has a similar program at its operation areas in Tarakan, East Kalimantan, and Pelalawan regency, Riau.
Environmental Development
Medco E&P pays attention to the environment. In this field, the company has been actively involved in reforestation programs, providing seeds for mango trees, durians, leeches, palms, teak trees and orchids to farmers near its operation sites. Among the beneficiaries of this program were the residents of Sanga-sanga village in Kutai Kertanegara regency, East Kalimantan.
In Tarakan, Medco E&P has also introduced a "green" program by distributing over 6,500 seeds of waru, mahang, polarium, acacia, bamboo and palm trees to local residents.
Public Facilities
More than 9,000 families in Sekayu, Muba regency, South Sumatra, can now enjoy clean water from a water treatment plant (WTP) built by Medco E&P. In Sanga-sanga, Kutai Kertanegara regency, East Kalimantan, the company has also built mineral water facilities for residents.
Medco E&P has provided a generator with a capacity of 10 KVA for the residents of Kerumutan village in Pelalawan regency, Riau. Some villages in South Sumatra have also received generators.
Sponsorship for PON XVI
In supporting the 16th National Games (PON) 2004, which will be held later this year in Palembang, the capital of South Sumatra, where a number of Medco E&P's oil fields are located, the company had built an international standard sports hall at a total cost of Rp 10.5 billion, in addition to its regular sponsorship for a 10-kilometer run in Sekayu. The sports hall, which has four badminton courts and a seating capacity of 1,200 people, was inaugurated by President Megawati Soekarnoputri on June 26 this year.
In 2003, Medco E&P received the PADMA Award from President Megawati for its success in implementing its Comdev Program and for its strong commitment to improving the welfare of local communities.
This achievement proves that the company's motto -- "Developing together with the Community" -- is not merely a slogan. Helping local communities become economically independent is not an easy job, but with its concept of "Providing the hook, not the fish", Medco E&P is sure its community development programs will be able to stimulate local economic growth.