Indonesian Political, Business & Finance News

Medco develops local community to improve living conditions

| Source: ICN WITH REVIEW FROM MED

Medco develops local community to improve living conditions

There's nothing more important than better living conditions
in terms of quality and welfare.
Everyone has the right to keep pace with each development. The
public should get involved in any development activities
occurring around it, and not only witness the process and get
left behind.

Realizing the importance of public participation in the
development process, PT Medco Energi Internasional Tbk. ("Medco
Energi"/"the Company") actively encourages local communities to
develop themselves through various programs tailor-made for them.

The publicly listed company is an Indonesian integrated energy
company focusing on Oil and Gas Exploration and Production, along
with two other business units; drilling services and methanol
production.

At present, Medco Energi has a daily average production rate
of 88,200 BOEPD. Medco Energi Oil and Gas business operates in 16
districts in five provinces, including South Sumatra, Riau, East
Java, East Kalimantan and Central Sulawesi.

In drilling services business, Medco Energi owns 11 onshore
and three offshore drilling rigs, which are being utilized by
several oil and gas multinational company. Their locations are
widespread over several provinces in Indonesia. The Company
operates a methanol plant owned by PERTAMINA at Bunyu island,
East Kalimantan.

Medco Energi continues to make efforts at the earliest phase
as possible to protect the surrounding environment and develop
the communities around its exploration projects and areas where
the rigs are being utilized. To develop the community, Medco
Energi has conducted several programs to make the people self-
reliant and give them a better living.

So far there have been over 50 villages located in the nearby
exploration projects in the districts involved in the community
development activities initiated by Medco Energi. The ongoing
activity is dubbed "Community Development 2001".

The community development program was based on the public's
need. It's ideally the local community that should initiate
certain ideas and formulate a plan and necessary action to
achieve a goal. However, support from Medco Energi and local
government, as facilitators or motivators, is still necessary.

The target of the community development programs included
those living in the villages near Medco Energi's facilities such
as production fields, container terminals and offices. Other
target groups are those living in the related districts and
provinces.

Programs

Medco Energi has introduced several programs related to
community development that aim to empower the local public.

The programs include projects focusing on six areas comprising
the socioeconomic, public health, education, infrastructure,
environment and culture.

Activities in the socioeconomic programs include skill-related
know-how and religious study. For instance, in Lirik district,
Riau, 20 teenagers have been trained in sewing for six weeks.

They were trained to make 200 school uniforms. After the
training the teenagers were given the 20 sewing machines they
were using during the training.

In public health, Medco Energi helped the local people to
improve their living conditions by providing clean water in
Sekayu, South Sumatra. The company also supported the
refurbishment of clinics or medical centers.

Activities in education/vocation include scholarships,
computer and printer installation at some universities, and the
supply of chairs for an elementary school. The company also
provides various books to support a library and gives lectures at
some public universities.

Infrastructure programs include the establishment of pathways
and the renovation of traditional markets in some villages in
South Sumatra and East Kalimantan.

Environmental projects include a nursery for a reforestation
plan in Tarakan, East Kalimantan and public empowerment to
preserve the environment around company's facilities.

In the religious, art and culture improvement activities, the
local community is supported to maintain local cultural
performances. Renovations for the improvement of mosques,
churches and temples have also been carried out by Medco Energi
in some sites located in the vicinity of the Company's facilities
and sites.

Improvement

Some of the projects are specially designed to have a double
impact. For instance, short training was provided for some locals
to make chairs, which were then donated to a local elementary
school.

The same also goes for the Company-sponsored sewing course.
The participants are trained to make school uniforms, which will
then be supplied to a particular school.

Each program and activity was designed on the basis of
community needs, local government program and also social study
prepared by local universities.

In South Sumatra, for example, the study was initially
conducted by lecturers at the state University of Sriwijaya,
therefore, Medco Energi can approach the community more
effectively.

In the environment program, Medco Energi applied an integrated
training program and conducted several activities to encourage
the local community to be self-reliant in agribusiness.

The program is an attempt to introduce and train farmers about
agribusiness. Therefore when they feel they already know what
kind of commodities they can develop, and understand the market,
including the overseas market, they are free to establish their
own businesses.

The program also allowed the farmers to identify potential
commodities or products, and to learn about appropriate
techniques to make them successful or efficient and cultivate the
land in a sustainable way.

The aim of Medco Energi's community development program is to
better the socioeconomic conditions of the communities where
Medco Energi operates in order to create a friendly working
environment.

It is Medco Energi's commitment to serve the nation and its
people well into the third millennium.

PT Medco Energi Internasional Tbk.
Graha Niaga 16th Floor
Jl. Sudirman 58
Jakarta 12190
Phone +(62)(21) 2505459
Fax +(62)(21) 2505536

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