Providing building blocks for a better future

Providing building blocks for a better future

Article 33 of the amended 1945 Constitution reads: "The earth,
water and natural resources contained therein should be
controlled by the state and used for the greatest possible
prosperity of the people."

This legal guideline has served as the foundation of state oil
and gas company Pertamina in its business since the early years
of its operation. Aside from contributing to national revenue,
Pertamina carries out its activities to improve the welfare of
the people, particularly those living in its areas of operation.

Pertamina has formulated a Corporate Social Responsibility
(CSR) program in line with its mission to provide value-added
services to stakeholders, customers, employees and the community,
in addition to supporting economic growth. The program covers not
only education and health, but also conservation and community
development.

All CSR programs are managed by the Partnership and
Environmental Development Program (PKBL) unit, which falls under
the Pertamina director of finance, and is coordinated to meet the
needs of each unique community.

In education, through its Cerdas Bersama Pertamina -- or Get
Smart with Pertamina -- Pertamina provides scholarships for all
academic levels from elementary to tertiary education, and
provides educational facilities. For example, the company has
established numerous "reading houses" for elementary students to
nurture good reading habits.

The company has also designed the Pertamina Youth Program to
introduce the oil and gas business to university students.

In health, the company has implemented various programs to
improve the health of villagers around its many areas of
operation.

One such program is Sehati, which targets mothers and
children. Others include an improvement of Posyandu medical
facilities, a public health service for toddlers, training and
refresher courses for midwives, hygiene and nutrition workshops
for pregnant women and medical treatment services.

In environment, Pertamina has two main programs -- the Clean
River and Reforestation programs. Past environmental projects
include mangrove planting and coastline rehabilitation in
Indramayu, West Java, and Muara Angke, North Jakarta.

Its community-oriented programs are designed to provide a
basis for sustainable development in communities affected by its
operations. Programs include entrepreneurship, farming and
fishery skills training.

So far, Pertamina has trained fish farmers in Cilacap, Central
Java, Indramayu, West Java, and Bunyu, East Kalimantan, on ways
to increase production of their fish ponds.

Another major project was the construction of a Rp 49 billion
fishermen's port and fish auction facility in 1985 in
Tegalkamulyan, Cilacap, to help boost the economy of local
fishermen. Local fishermen can now sell their catch not only in
domestic markets, but also export them.

Tegalkamulyan has flourished since the port's construction,
which has turned the previously quiet village into a bustling hub
of the fishing industry.

Pertamina also contributes to social welfare in the forms of
charity and financial aid packages.

For example, Pertamina has made several donations to the
Indonesian Red Cross, including scholarships for Red Cross
diploma students, blood donations, refrigerated centrifuges and
other blood-testing equipment.

Other social welfare programs are dedicated to providing aid
to victims of natural disasters, such as victims of the Nabire
earthquake and major flooding across the archipelago, as well as
victims of fires that have razed entire neighborhoods, as was the
case in Karanganyar-Sawah Besar, West Jakarta.

Small-scale businesses and home industries also benefit from
Pertamina's CSR programs. Aiming to empower local people through
the development of their businesses, Pertamina has established
partnerships with small enterprises through the provision of soft
loans, for which the company has allocated about Rp 400 billion.

Pertamina Surabaya, for example, has allocated Rp 51 billion
in soft loans to its small-scale business partners in four
provinces: East Java, Bali, and West and East Nusa Tenggara.
Entrepreneurship training is a key part of the program, and has
been carried out in Surabaya, Bandung and Kupang, East Nusa
Tenggara, so local people can establish a sustainable means of
income.

Taking responsibility for the welfare of communities that have
hosted its operations is a top priority for Pertamina, and toward
the effective realization of this goal, the company allocates 1
percent to 3 percent of its net profit annually to finance its
CSR programs.