PT Petrosea Tbk

Creating Social Empowerment through Sustainability

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Authors

Aprilyan Wahyu Nugroho

Aprilyan Wahyu Nugroho

Ricky Yanuardi

Ricky Yanuardi

Jhon Harlen B

Jhon Harlen B

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

11. Sustainable Cities and Communities

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Summary

PT Petrosea focuses on creating a positive outcome for its shareholders, employees, and stakeholders in the communities in which they undertake their businesses. Their programs are created for the local people with the objective of educating and instilling them with the culture of their homeland, good values, and integrity. This enables them to create a healthier way of life, promoting meaningful change in communities, and improving the quality of life.

The company benefits because local businesses can supply items the company needs at reasonable prices. The training provided helps people run businesses and develop skills to help people qualify for jobs at PT Petrosea and earn a living.

Innovation

Petrosea has set a benchmark for CSR activities by establishing the Community Small Business Group (Kelompok Usaha Bersama, KUBE) in Sukamaju and Mulawarman Villages in the Kutai Kartanegara area where Santan Batubara operates. KUBE provides assistance to communities in surrounding operational areas by improving their welfare. They provide targeted training to members of these communities encouraging them to set up businesses to supply PT Petrosea with items they need. For example, community members have been taught to sew and the company has helped people purchase sewing machines to set up garment production centers that supply uniforms for mining sector workers.

Another Petrosea subsidiary, MBSS, has established the Stevedores Cooperative (Koperasi Tenaga Kerja Bongkar Muat, TKBM), and routinely provides internship training for people living in surrounding communities of its operational sites.

These programs and others like them can initiate and facilitate the establishment and maintenance of sustainable livelihoods among individuals and communities well into the future.

PT Petrosea also helps people in local communities establish new businesses. The Kariangau Livelihood Program is designed around the result of needs assessment, stakeholder mapping, and joint decision making with stakeholders at the village level, particularly village government, community organizations, and the community as a whole. The purpose of this program is to support local communities of Kariangau to develop their livelihoods and increase their income.

In such a program, seven new community business groups and two existing community business groups received assistance to strengthen their management and business development skills. Further, Petrosea equipped them with training around principles of organization, home economics, entrepreneurship, as well as bookkeeping, micro finance, and technical training with business fields/products developed by each group. Competent trainers were invited to provide technical knowledge and share experiences with members of the group. Petrosea also provided stimulant assistance as support for groups to develop their business and increase production capacity.

Each group has the same opportunity to obtain consultation guidance for institutional and production strength. Seven of the nine businesses continued to work with the program. One of them is Sumber Bahagia, hired to perform Mangrove rehabilitation activities. The scope of work included technical design, provision of seeds, planting and maintenance of Mangrove areas.

Creating Social Empowerment through Sustainability

Inspiration

One of the company's values is social responsibility. They are highly concerned for the environment and contributing to the prosperity of the community. This value is strengthened by the principle that, wherever the company operates, they will always uphold business ethics and transparency to empower the community and encourage local potential.

Overall impact

PT Petrosea believes that improved sustainability of the environment creates net benefits for their business, customers, and the planet. They build environmental sustainability into each of their business functions and processes. For the stakeholders, this means changing the way people work, live, play, and learn through technologies that create social value.

The company continues its efforts to ensure sustainable exploitation of natural resources through rehabilitation and preservation of operational sites. The company systematically mitigated environmental impact by reclaiming land at its mining sites to return the soil to a state viable for post-disturbance land uses. Such reclamation is an integral part of the planning of mine operations, and is carried out progressively in a number of phases before, during, and after operations, with replanting undertaken as soon as the land is ready.

This is done throughout all of the company’s operations with no exception because the company understands the importance of returning the land to a state in which it can continue to benefit local communities in its operational areas on a sustainable basis.

Petrosea continues to find ways to balance between business and social interests.

Business benefit

Petrosea is concerned with improving the community’s quality of life where it operates and is the company’s first priority, without setting aside environmental impacts and profitability. Petrosea, which is engaged in the energy sector, is aware that exploitation activities carried out are closely related to the environment and the local community. The impact becomes a challenge in how the company can handle environmental issues, yet at the same time provide beneficial value from its existence as a company, as well as a member of society. This is also related to the company’s commitment as a law abiding citizen by complying with the applicable laws; such as employment, transparent business practices, and environmental preservation.

Social and environmental benefit

Petrosea puts its commitment to community welfare into action through volunteerism, linkages with institutions and nongovernmental organizations, plus specific programs to empower members of communities in its operational areas, especially children and women, toward better education, health, welfare, and enhanced contribution to their families, their regions, and their nation.

Interview

Agus Budi Nurwiyoto, External Relation Manager

Photo of interviewee

Business information

PT Petrosea Tbk

PT Petrosea Tbk

East Kalimantan, ID
Business Website: http://www.petrosea.com
Year Founded: 1972
Number of Employees: 1001 to 5000
PT. Petrosea is one of biggest EPC (Engineering, Procurement, and Construction) companies in Indonesia. They offer a competitive advantage through their ability to provide complete pit-to-port mining solutions, supported by integrated engineering and construction capabilities and logistical support, while demonstrating a commitment to health, safety & environment, quality management, and an ethical code of business conduct. The company also provides services for the oil and gas industry in Indonesia through its Petrosea Offshore Supply Base, a deep-water supply base that consistently delivers international standards and cost-effective services to its clients.