Pertamina sets guideline for community development program

The country's oil and gas industry should focus on the communities living around their operation in their community development (CD) programs, according to the new guidelines set by state oil and gas company Pertamina.

The new guidelines signed by acting head of Pertamina's foreign contractors management body (BPPKA) Herucokro T.M. on March 31, 2000 state that the CD program is an effective measure to avoid cultural conflicts, social and economic gap between the oil and gas industry and the local communities and to create the sense of belonging among the local communities.

"CD is the realization of the social responsibility of companies for the development of the communities living around the companies' operating areas," state the guidelines whose copy is made available to Petromindo. Com.

The new guidelines formulated based on the discussion held on March 23, 2000 in Bogor, West Java, put the country's oil and gas companies in several groups based on the areas of responsibility in the implementation of the CD.

CD programs in Aceh are assigned to Mobil Oil, Gulf Indonesia Resources, Lasmo Oil, Talisman and Inpex,

The Riau archipelago, including the Natuna islands, must be taken care of by Conoco Indonesia, Gulf Indonesia Resources and Premier Oil, while the Riau land is the responsibility of Caltex, Kondur, Santos and Petronusa Bumibakti.

The South Sumatra area is for Amerada Hess, Gulf, Golden Spike, Exspan, Talisman (OK), while the East Kalimantan area is for Total Indonesie, Vico, Unocal, Exspan, Shell, and Lasmo.

Santa Fe, Arco, British Gas, IGO, Lasmo, Coparex and KNOC take care of the Irian Jaya area, while Kufpec, Kalrez, Canadian Oxy are responsible for the Maluku area.

The Jakarta and West Java areas are for YPF Maxus, Arco, Greka and British Gas, while the East Java area for Arco, Kodeco, Lapindo Brantas, Santa Fe Tuban, Santos, Gulf, Premier and Mobil Oil.

The companies should put the first priority to the communities living in the radius of two and five kilometers from their operations, including production fields, refineries, depots, terminals, special ports, housing complexes and office buildings. The second priority is to the people living in the regencies where they operate and the third priority is to the people in the provinces.

The new guidelines also increase the cash aid that could be immediately disbursed by the companies to Rp 100 million from Rp 10 million.

The CD programs should be conducted based on the needs of the local communities in cooperation with the governmental institutions, universities, non governmental organizations and the local people. The companies serve mainly as facilitators and stimulators and implement the programs based on their respective financial capabilities.

The implementations of the CD programs should be evaluated by the companies in cooperation with independent agencies, including universities, non-governmental organizations and research agencies, the new guidelines say. (*)