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.