'Oil Colonies' spring up where wells gush

'Oil Colonies' spring up where wells gush

By Raja Isyam Azwar

Riau has long been famous for its oil, a major source of
foreign exchange for Indonesia, which in turn has made it a point
of urbanization. As in other places, this source of black gold is
a bonanza attracting people from the world over, making the quiet
area quite a busy center of industry.

Colonization as a consequence of the oil industry does indeed
have an extraordinary impact on the oil-rich areas. Oil
exploitation concentration areas such as Rumbai, Minas, Duri and
Dumai are developing rapidly.

Population growth is rapid. Duri City (subdistrict of Mandau,
Bengkalis) and Minas (subdistrict of Minas, Siak) are extreme
examples of this population boom. In 1990 Minas' population was
23,400 but in 2000, it has more than doubled to 48,000 people.

As has Duri. Its population has nearly doubled from 104,000 in
1990 to 195,000 in 2000.

One of public figures of Mandau, H. Mohd Khotbah Arrofie,
said, "Previously, the forest was priceless in Sebanga (a Duri
suburb). But now there is no forest let alone empty land. If
there is, the price is very exorbitant."

Minas and Duri have develop rapidly, with markets, shopping
centers and office buildings mushrooming.

Other areas following their lead are Rumbai and Dumai.
Although not as rapidly as the two areas above, the existence of
oil exploitation increases economic growth of the surrounding
areas.

Quantity

There is a great number of oil workers in Riau. Most of them
are employed by PT Caltex Pacific Indonesia (CPI) -- about
28,000. The remainder are employed by smaller companies, such as
Kondur Petroleum (500 employees), Conoco and Expand.

PT CPI Vice President Corporate Human Resources Suwito Anggoro
said, "Total permanent workers number 5,800, contract workers
24,000 and service-type contract workers 3,000 on average."

Education-wise, 2,700 are graduates, 4,600 undergraduates and
the remainder senior high school graduates.

Suwito said that most workers are posted at Duri, which has a
field with a very large well, producing 300,000 barrel per day,
and Bekasap field, which absorbs nearly 60 percent of PT CPI's
workers (20,000). This is followed by Minas 20 percent, Rumbai 15
percent and Dumai 5 percent (Support Operation).

Minas-Duri

Oil workers have been found in Riau since the Dutch
colonial era and continued during Japanese occupation. In 1924, a
consortium of Socal and Texaco through PT CPI carried out a
survey and exploration around Minas and Duri.

In the Balai Raja village, history of Duri activities in the
oil sector can be seen from the local graveyard. According to
local elders, they were forced to build a road in the interest of
oil exploration in this area.

"There have been many newcomers since 1943, mostly from Java,
West Sumatra and North Sumatra," H. Mohd. Khotbah Arrafia said.

In line with the fast-growing oil exploration in these two
areas, especially after the invention of "giant" oil fields in
Duri (Duri Field, 1941) and Minas (Minas Field, 1942), their
populations increased rapidly. Statistical data indicates that
their growth rates have reached 7.88 percent for Minas and 6.66
percent for Mandau, Duri, annually. This is far above both Riau's
average rate (3.79 percent) and the national rate (1.6 percent).

The Central Bureau of Statistics in Riau (BPS Riau) Head of
Population Statistics, Togi Siahaan, said, "The urbanization rate
is very high, much higher than the national one. It may match
Batam's record (12 percent, editor)."

In addition, oil exploration also has a significantly positive
impact on the local people's economy (unfortunately BPS Riau has
never recorded concrete data on this economic growth rate).

However, as an illustration, oil-worker dissemination in Duri
may serve as a model to describe the magnitude of the impact of
oil exploration on surrounding areas. According to data from PT
CPI, 60 percent of its workers and contractors are concentrated
in Duri. Assuming that they spend 60 percent of their income for
their daily needs, total money circulating in the local market
reaches about Rp 18 billion to Rp 24 billion per month. This is
very significant indeed for local economic growth.

"Generally, contractors rent their offices outside. They also
go shopping at local stores. Stores and suppliers develop. Duri
development is 50 percent directly attributed to CPI's workers at
Duri," said Suwito.

Kurau

Different from Minas and Duri, oil exploration in Kurau
subdistrict, Merbau, Bengkalis, and its surrounding areas does
not seem to have a significant impact on regional development
growth. The mines concession area of 11,800 square km, managed by
PT Kondur Petroleum since 1970, seems not as strategic due to a
hard terrain dominated by peat areas and the sea.

A very small production factor (only 15,000 barrels per day)
and limited workforce (about 500 employees) cannot yet give any
significant contribution to local development.

Life of oil workers

For laymen, the most prominent factor of oil workers is, of
course, their welfare. In general, they have a higher economic
level than workers in other sectors.

However, from another point of view, the life of oil workers
is quite unique, especially that of site workers. A visit to the
exploitation area of PT Kondur Petroleum in Kurau gives a
portrait of their unique life.

Site workers have very tight schedules. After working shifts
which can last weeks, they are off for two weeks. Working in
remote areas, in forests and at sea is challenging. They are
presented with basic human dilemmas. PT Kondur Petroleum Public
Relations staffer, Priyadi S. Budi said jokingly, "Yes, it is
quite hard to be at site for a long time, far from family,
especially for bachelors, they only see monkeys."

This is even more so for employees posted at oil rigs
facilities. PT Kondur Petroleum has its Ladinda, a supertanker
with a capacity for 500,000 barrels, berthed at a bay. Employees
work on board for two weeks (the writer was invited to spend a
night there on July 31, 2000, and as soon as boarding, was given
a detailed safety briefing, editor).

"Just imagine: eating, sleeping, working on top of thousands
of barrels of oil. But this is a job," said Priyadi, explaining
the heavy psychological burden the employees may have to bear.

Nonetheless, working in an oil company promises adequate pay.
At staff levels, let alone higher levels, welfare is adequate. A
Melibur-Kuru processing staffer, Arif, said as much. "Yes, it is
quite adequate. It is above Rp 1 million, depending upon the job
and position. For me, with one dependent, it is sufficient."

Even a gardener at an oil company receives an adequate salary
if viewed from the average income in Indonesia. Edi, for example,
working for a landscaper, one of PT CPI's contractors dealing
with the company's premise cleanliness, said that his income
reached Rp 650,000 per month.

Expatriates

Meanwhile, expatriate employees have a different lifestyle to
the local workers. They earn much higher salaries.

The number of expatriates is quite high. At PT CPI, there are
190 -- 80 of whom are contractors. They frequently hang around
the city with their friends or family at weekends.

Expatriates enjoy having dinner out in Riau and they usually
visit special places or restaurants such as Rumah Makan Pondok
Patin, Pondok Gurih, Restoran Hotel Aryaduta, Hotel Mutiara
Merdeka and others.

At PT CPI, they are expert staff and usually employed on a
contract basis for an average of four years. Their employment is
based on the framework of transfer of know-how and technology.

Anthony Joseph Perez, one of expert staff seconded by Chevron
to PT CPI, working since 1998 in Rumbai-Camp enjoys his work very
much and catches interesting impression from his surrounding
environment.

In reply to the writer's question, the man from Houston,
Texas, USA, said that he spent his spare time enjoying sports,
such as golf, bicycling and other recreational activities. "We've
seen line racing in Kuantan Bay. Sometimes we go to Bukit Tinggi
and Lake Maninjau (in West Sumatra). Sometimes we spend the night
in one or several hotels in Pekanbaru and enjoy eating in
restaurants," he said.

In addition, he added, he and his friends frequently visit
local traditional events such as marriage ceremonies, sports
competitions and buy souvenirs.

In his own words, the most interesting thing for Tony during
his work in Riau is: "There are many challenges associated with
working in Riau, but I believe it is still the adventure that the
location adds to the work experience, which I find most
interesting. We are challenged intellectually with the work
because of technological changes, differences in language and
cultural diversity and the impact of governmental and economic
change. Finding a balance between these challenges means finding
harmony and a sense of satisfaction at the end of the day for
having met the challenge. Also, where else can one work with the
latest technology and walk out of your office and see a jungle
and wild animals like monkeys and monitor lizards!