Pertamina sets new 'CD guidelines'

JAKARTA (JP): State oil and gas company Pertamina has issued a new ruling ordering its oil and gas contractors to focus their community development (CD) programs on the people living around their operating sites.

The new ruling, signed on March 31 by acting head of Pertamina's foreign contractors management body (BPPKA) Herucokro T.M, states communities living within five kilometers of oil and gas operations, including production fields, refineries, depots, terminals, special ports, housing complexes and office buildings, should be the contractors' top priority.

The second priority is to the people living in the same regencies as the operations and the third to the people in the same province.

Oil and gas companies have often been criticized for their social programs. While they are run for the purpose of creating a good corporate image, nearby communities have often not directly benefited from them.

The new ruling underlines the importance of CD programs as a way to avoid cultural conflicts; bridge social and economic gaps between the oil and gas companies and the local people; and to create a sense that local people belong to the companies.

"Community development is the realization of the social responsibility of companies for the development of the communities living around their operating areas," mines and energy web site Petromindo.Com quoted the new ruling as saying.

The ruling categorizes the oil and gas companies based on their areas of responsibility in the implementation of the CD programs.

CD programs in Aceh have been designated to Mobil Oil, Gulf Indonesia Resources, Lasmo Oil, Talisman and Inpex.

The Riau archipelago, including the Natuna islands, has been assigned to Conoco Indonesia, Gulf Indonesia Resources and Premier Oil. Caltex, Kondur, Santos and Petronusa Bhumibakti are responsible for inland Riau.

CD activities in South Sumatra have been designated to Amerada Hess, Gulf, Golden Spike, Exspan, Talisman (OK), while the East Kalimantan area is the responsibility of Total Indonesie, Vico, Unocal, Exspan, Shell and Lasmo.

Irian Jaya has been designated to Santa Fe, Arco, British Gas, IGO, Lasmo, Coparex and KNOC, while the Maluku area has been assigned to Kufpec, Kalrez, Canadian Oxy.

Jakarta and West Java have been assigned to YPF Maxus, Arco, Greka and British Gas, while East Java to Arco, Kodeco, Lapindo Brantas, Santa Fe Tuban, Santos, Gulf, Premier and Mobil Oil.

The new ruling also increases the cash aid that can be immediately disbursed by the companies in case of emergencies without prior approval from Pertamina to Rp 100 million from Rp 10 million.

CD programs should be implemented in cooperation with government institutions, universities, nongovernmental organizations and the local people, with the companies mainly serving as facilitators. (jsk)