Corresponding Author: Isrianto Kurniawan
E-mail: isrianto_kurniawan
sbm-itb.ac.id
INTRODUCTION
The United Nation Sustainable
Development Goals (SDGs) provide an ambitious, transformative and global
framework to shift the world onto sustainable and resilient path, by 2030 (Karyanto & Martiana, 2020). The world has pledge that no one will be left behind as we
embark on this collective journey to act for the sustainability of people,
planet and prosperity �(Nation, 2017).
This
universal agenda force all of us to take bold and transformative steps which
urgently needed for the sustainable development. In order to successfully
tackle these challenges� business, government and civil society must work
together and change the system that have created that we now face. In March 2021, the World Business Council for Sustainable
Development (WBCSD) launched Vision 2050: Time to Transform, stated that
there�s nine transformation pathways that are essential to society (IPIECA, 2021).
In this path, the oil and gas sector play an essential role to
realize this vision and indeed the broader ambition of the SDGs and the
objective of Paris Agreement. However, this industry also faces a
sustainability challenge. While supporting a growing global population�s demand
for energy, the industry must continue to evolve the business model to scale up
climate change action by continuous improvement to realize world aspiring
net-zero emission.
Besides that,
the oil and gas industry has always been in the spotlight in every country,
especially in environment, social and ethical business aspect (Kurniadi, 2015). Therefore,
in the country named Indonesia� it has own regulation to obligate an extractive
company doing corporate social responsibility (CSR) (Nurfadilah, 2015). Whether
small or large, there�s unintended side effect of human behavior, environment
and business operation mutually.
Our
commitment to sustainability aligns with the global dynamics that put forefront
the commitment to environmental, social, and governance in the business
strategy as well as the Sustainable Development Goals (SDGs); Pertamina
Commitment (EP, 2021).
�The role of oil and gas business to society and the environment,
must take a high road by integrating the SDGs into core business. This action
will not only generate significant contribution to the SDGs, but also help
companies build resilience during energy transition, attract and retain top
talent, manage regulatory and reputational risk, and present new market
opportunities and access to sustainable finance.
PT Pertamina (Persero) as the only one oil and gas state-owned
company in Indonesia� was running business in full spectrum of oil and gas
industry; upstream, midstream and downstream (Syaus, 2016). These particularly to pay dividend and maintain energy
resilience to Indonesia. Besides using national budget, company needs to
attract financial funding to realize company strategic plan. However, to get an
investment, Pertamina has to increase company value and go beyond compliance;
become world class oil and gas company, as well as contribute in SDGs ambition.
In order to achieve the sustainability, Pertamina enforce its
subsidiaries to manage company performance. It generates in company�s
sustainability strategy, policies, and organization governance. Besides being
profitable, Pertamina has to manage its business by not causing harm for the
environment and communities in and around operation area.
As an extractive company, being profitable by manage production
performance was already challenging� since oil and gas known as unrenewable
energy. Especially for upstream business sector which responsible on
exploration and production process that operated in brown field. Experiencing a
natural decline of energy resource was totally inevitable.
Figure 1.
Tarakan Field Production Performance
In a case of Tarakan Field, one of Sub Holding Upstream units of
Pertamina�2019�2020, company faced a notable rate of natural decline in 32%.
Meanwhile the company�s production target in year of 2021 stays on high number
2138 BOPD. This forces company to do significant and yet efficient improvement
to sustain the business activity of Tarakan Field.
In 2020, Tarakan Field had identified 1200 potential wells in
Pamusian structure, it still contained bypassed oil which automatically cutting
off oil conduction to an active well. Seen from engineering point of view,
these thousands well should be undertaken with no excuse in order to attain
revenue gain of Tarakan Field. Meanwhile, socially speaking, those wells were
located in high population area.
Figure 2.
Map of Suspended Well Location
But, shows in figure 2, there were wells red colored, it tells
that wells are located in high population area. This condition is doubled the
challenges, in order to manage production performance, Tarakan Field also need
to manage stakeholder engagement to avoid industrial conflict that could affect
business operation and disgrace company reputation.
In contrast, the company needs to recognize societal needs, not
just conventional economic needs, define markets. It also recognizes that
social harms or weaknesses frequently create internal costs for companies�such
as wasted energy or raw materials, costly accidents, and the need for remedial
training to compensate for inadequacies in education (Husted et al., 2015). And addressing societal harms and constraints does not
necessarily raise costs for companies, because they can innovate through using
new technologies, operating methods, and management approaches�and as a result,
increase their productivity and expand their markets (Adha, 2020).
Balancing the business, social, and environment were become the
sustainability of Pertamina business strategy which also known as The Triple
Bottom Line principle (Putra & Wirman, 2017). It means that company has to well aware that importance Planet,
People and Profit are corresponding. And it just not for company itself,
however company CSR practice isn�t only given added j..value for company, but
also communities and stakeholders; shareholder, civil society and government�
which also increase national competitiveness (Boulouta & Pitelis, 2014).
Table 1. Environmental
Management and CSR Budget
|
Environmental Management Budget
|
Year (Mil. IDR)
|
|
2019
|
2020
|
2021
|
|
Water pollution control budget
|
18
|
18
|
1.373
|
|
Air pollution control budget
|
6.131
|
43.146
|
3.708
|
|
B3 waste management budget
|
2.840
|
1.785
|
1.837
|
|
Environmental management budget**
|
6.194
|
43.187
|
3.860
|
|
Corporate Social Responsibility budget
|
1.817
|
2.181
|
1.225
|
The table 1 above shows us environment management and CSR budget
cost are generated in company�s operation cost. As announced before, achieving
production performance target is not the only one that matters for the
sustainable business in oil and gas company. The company has to ensure that the
process doesn�t cause a damage for environment and creating shared value for
community in operation area. The concept of shared value, in contrast,
recognize that societal needs, not just conventional economic needs, define
markets. It also recognizes that social harms or weaknesses frequently create
internal cost for company�s� such as wasted energy or inadequacies in education
(Porter & Kramer, 2018).
Meanwhile, Tarakan Field was already aware and implemented that
concept since a long time ago. It wasn�t only for create a harmonization, but
also work together on development program with local stakeholders and community
through CSR program. The relationship between Tarakan Field, stakeholder and
community was built through collaboration and engaging same vision� this create
a shared value for one another; for company, stakeholder, community, and
empowerment. But this achievement still not well knowledgeable because lack of
measurement and has not yet well described.
Therefore, the shared value between CSR Program and core business
activity in upstream oil and gas company might not as clear as in manufacture
company. The long period and significant effort of implementing long-term CSR
Program somehow ignite a question about measurable impact by doing CSR Program
as a social investment to community. Even though, Tarakan Field is already
having CSR policy which align to Indonesia regulation and well-structured CSR
guidance� the added value for business operation still vague and the social
investment isn�t measured yet.
From this reason, this paper gives a descriptive examination of
the creating shared value through CSR implementation in accordance to the
sustainability in Tarakan Field over the period 2020 � 2021 by taking two
stages approach: assess the connectivity of the creating shared value through
CSR implementation and the sustainability, and the measurement of CSV in
Tarakan Field. The paper unfold as follows: Section II provides a literature
review of CSR and the sustainability, CSR in upstream oil and gas company, and
rethinking CSR through CSV. Followed by Section III that provides a
methodology; research design, data collection and data analysis. In Section IV
provides paper result findings, and Section V is the conclusion.
METHOD
This research utilizes a case study method. Data for this study were
collected in two main types: primary data gathered through interviews and
secondary data collected through document analysis and published oral history.
The case study method tends to be more flexible, as it proposes an in-depth
exploration from various perspectives of the richness and complexity of
specific social units, systems, or phenomena.
Seven individuals will serve as key informants for this research, and
they will be interviewed by the author. Among them are two members from the CRC
Unit, one of whom is also involved in management, four representatives from
beneficiaries�one from a government institution and three from the local
community. Equally important is the representation from Tarakan Field
Management. Each interview is expected to last approximately 30 minutes and can
be conducted through face-to-face discussions or over the phone. The profiles
of the interviewees are described in the table below."
Table 2.
List of Interviewees
|
Initials
|
Work
Length (Years)
|
Position
|
|
VB
|
5
|
Head of
Communication and Relation
|
|
NK
|
3
|
Community
Development Officer
|
|
YKR
|
17
|
Management
|
|
K
|
4
|
Tarakan
City Government representative
|
|
SL
|
4
|
Community
Development Program Beneficiary
|
|
H
|
4
|
Community
Development Program Beneficiary
|
|
AN
|
4
|
Community
Development Program Beneficiary
|
After the data is collected, it is analyzed using the process of
triangulation, as an inquiry logic, to distinguish the intentions, objectives,
and literature review through the case study research process. Triangulation
has developed strategies to explore how and in what ways the findings for a
specific social phenomenon converge, diverge, contradict, or remain
inconclusive through a process. Triangulation also encourages decisions on how
to design, collect, analyze, interpret, and justify claims about the social,
economic, and environmental settings (Green, 2018).
Thick narrative description�Key to understanding the data is that
the report provides thick narrative description of the case, including the
current context, history, and chronology of events. This description enables
deeper understanding on the part of the reader. Thematic analysis�In addition
to description, the author seeks to identify topics or issues that emanate from
the findings and that shed light on understanding the complexity of the case (Green,
2018).
When multiple cases are selected, a typical format includes a detailed
description of each case as well as reports of themes within each case
(within-case analysis) followed by thematic analysis across cases (cross-case
analysis). Themes aggregate information into larger clusters of ideas and
illustrate similarities and differences. Themes can also be presented as a
theoretical or conceptual model.
RESULTS AND
DISCUSSION
This section analyses the CSR practices in Tarakan Field by using
selected data from interviews, document, and reports of the company. First,
this final project talks about the CSR Program in Tarakan Field, and its
correlation with company objective as well as the Sustainable Development Goals
(SDGs) using Carroll�s CSR Pyramid (2016). It followed by the analysis of how
CSR Program of Tarakan Field give an impact for the sustainability; People,
Planet and Profit. After that we could see the description of a creating shared
value (CSV) of CSR Program in Tarakan Field which gives a value for society and
company itself assessed by CSV concept (Porter & Kramer, 2018).
The Relationship of CSR and The Sustainability
CSR has typically been perceived as policies and practices that
business people employ to be sure that society, or stakeholders, other than
business owners, are considered and protected in their strategies and
operations (Carroll, 2016). Tarakan Field operation area is very intersecting with community
settlements. Long before Pertamina taken over Tarakan Field, the operation area
was already illegally occupied by the community. Management representative of
Tarakan Field stated that, CSR practice purposely to prevent risk towards
business operation as well as environment and communities around operation
area.
CSR is a social strategy that company use to mitigate the
potential of asset facilities and operation sabotage from communities (Keenan et al., 2019). That�s why it�s importance for company to doing social risk
assessment, in order to know the pile up best procedure to mitigate or to
respond an emergency for not being escalated. If it escalated, this will lead
to the termination of business operation which cause harm to business
sustainability.
Every year, Tarakan Field conduct social mapping to gather
information of social problem, local potential, and the needs of communities.
Capturing social condition not only become base line data for company to
arrange CSR Program, but also useful for designing a whole of company strategy.
These helps company compiled social and engineering job, at once calculating
company budget precisely. Based on that, company is aligning operation and CSR
budget, because one and another are integral to computing company profit
maximization.
The construction between operation and CSR above was internally
generated by company specific. Tarakan Field as the subsidiary of Pertamina
Persero obliged to support holding commitment; actively contribute in
sustainable development agenda. It leads to Pertamina sustainability strategy;
ESG (Environmental, Social, and Governance) that integrates company�s
strategies and activities into the context of environmental, social, and
governance, especially in contributing to the SDGs and achieving Pertamina ambition
to become a world-class oil and gas company.
Followed holding company sustainability strategies, it was
internalized in Tarakan Field policies and activities to operate the company.
Based on that, company�s CSR practices purposely to create a value that support
Pertamina ambition as well as SDGs. Tarakan field recognized that to create a
value, the process of CSR practices needs to be structured and systemized (Pertamina
EP, 2018).
It required for CSR programs to have a positive impact on society and add value
to the company, which are:
1.
Providing a
positive impact (relevant and beneficial) for society and the environment.
2.
Fully
supporting efforts to improve the company's image and reputation.
3.
Fostering
cooperation and building the self-reliance of communities around the company's
operational area through CSR programs.
4.
To obtain
support, foster mutual understanding, and create synergy between the company
and its stakeholders.
5.
To
prevent/anticipate the occurrence of cultural value clashes, social conflicts,
and economic conflicts between the company, the community, and other
stakeholders.
The CSR Policy of Tarakan Field composed by several aspect. First
is global issue refer to SDGs� followed by a social mapping for the contextualization
of development issue in local area. Secondly is company vision and mission and
regional development plan. This formulation of CSR policy was implicated by the
balance of functional relation between company and community.
PT Pertamina EP's CSR program is either planned or unplanned. The
arrangement of CSR program is based on strategic and operational plans agreed
upon by stakeholders through a discussion and approval process.
Empowerment-based programs aim to strengthen communities through processes of
planning, implementation, monitoring and evaluation. Charity/donation programs,
on the other hand, provide immediate relief to those in need. The company
emphasizes that CSR programs should be outsourced to communities close to its
operations based on priorities and actual needs.
Meanwhile, in internal company, Tarakan Field managed to follow
the procedure of CSR practice which divided in three stages: planning,
implementation, and monitoring evaluation. The description below is how Tarakan
Field operate company CSR practices that accounted for field, zona/ asset,
region, sub holding upstream, Pertamina Persero and SKK Migas.
Following Carroll�s CSR pyramid, there were four components of
company responsibility; economic, legal, ethical, and philanthropic
responsibilities has been already accomplished by Tarakan Field. There�s a
national forum in Republic of Indonesia, particularly organized by Ministry of
Environment and Forestry Indonesia Republic� known as PROPER; Public Disclosure
Program for Environmental Compliance which the most prestigious appreciation
from Indonesia Government to private sector that operate in Indonesia. Every
year, Tarakan Field actively participate in PROPER, particularly in 2019 �
2021� which are the scope of time of this paper.
Figure
3. Tarakan
Field Received Gold PROPER from Indonesia Government
In the last four years Tarakan Field was achieving a beyond
compliance and environmental and sustainable community development level regarding
company environmental management and CSR application. This situation represent
Tarakan Field is already undertakes an economy, legal, ethical and
philanthropic responsibilities from the perspective of Carrol�s CSR pyramid
concept.
By going further� the philanthropic responsibilities come from
community�s desire� practically submitted as a proposal and the output from
company is charity program. In CSR Organizational Governance of Tarakan Field
which commenced in 2018, the charity program included in un-planned CSR
Program. This type of program doesn�t give a significant impact for community,
government and company itself for the long-term period of time. Even so this
create a harmonization between company and community, but charity program also
cultivates a dependency of community� which not gives a significant or wider
impact.
Even so, the charity Program couldn�t be eliminated anyway,
because there�s a specific time that needed, such as natural disaster or like
the period of pandemic COVID-19. This program has not an element of
empowerment, because there�s no phases like planning, implementing, monitoring
and evaluating� only executing the proposal or the company quick response of
social phenomenon.
The second category of CSR Program in Tarakan Field is community
development� a planned program. This program purposely builds to empower local
community and contribute to environmental preservation with four phases of
process; plan, implementation, monitoring and evaluation. This program has a
clear background, objective, subjected, program activity, budget, time frame,
and an expected output.
Table 3 .Tarakan
Field CSR Budget Allocation
|
CSR
Program
|
Yearly
Budget (Mil. IDR)
|
|
2019
|
2020
|
2021
|
|
Charity
|
913
|
852
|
228
|
|
Community Development
|
903
|
1,255
|
438
|
|
Total
|
1,817
|
2,106
|
666
|
Following the CSR Program trends, look at Table 4. budget
allocation for community development program is higher that charity program in
the last three years. It shows that the program priority has been shifted
slowly� which driven by a company objective as well as the commitment Tarakan
Field to contribute to SDGs.
Tarakan Field has done many CSR Program with community development
based. But in 2019 � 2021 period of time� there�re three community development
program that Tarakan Field currently focus on. First is disability community
development in Tarakan City through MSME Batik Environmentally Friendly
(Kelompok Usaha Batik Disabilitas; Kubedistik)� located in Kampung 1, Tarakan.
The second one is The Work Alliance of Waste Management (Aliansi Kerja Bebas
Sampah; Akar Basah)� located in Mamolo, Nunukan. And the last one is COVID-19
Disaster Resilient Village (Kampung 6 Tangguh Bencana COVID-19; Kelingan), this
program particularly conducted to respond pandemic COVID-19 by actively
involving the community� located in Kampung 6, Tarakan.
The shear zone between economic and environmental aspect was
probably the common or mandatory thing to do for extractive industry; Tarakan
Field as an upstream oil and gas company. This agenda is throwing up such
agenda as eco-efficiency. The interesting concept that Elkington said is, �The
more efficient the actors, however, the more actors can be sustained�. Tarakan
Field concerned in seven environmental management aspect, these included:
energy efficiency, hazardous-waste reduction and utilization, non-hazardous
waste management (3R), air pollution reduction, water efficiency, water
pollution load reduction, and biodiversity.
Table 4. Tarakan
Field Contribution to SDGs
|
Environmental Aspect
|
Total of Activity
|
National Medium-Term
Development Program
|
Tarakan Field Contribution
|
|
Energy
efficiency
|
17
|
14,5 %
|
0,00000259 %
|
|
0,9 BOE/ Billion Rupiah
[20,9%]
|
0,000328 BOE/ Billion Rupiah
[0,03644%]
|
|
Hazardous-waste
reduction and utilization
|
11
|
98.680.000 Ton
[23%]
|
2.288,42 Ton
[0,002319 %]
|
|
Non-hazardous
waste management (3R)
|
13
|
67.100.000 Ton
[21%]
|
17,92 Ton
[0,00002671%]
|
|
67.100.000 Ton
[21%]
|
1,99 Ton
[0,00000297%]
|
|
Air
pollution reduction
|
18
|
4.920.000 Ton CO2
[22%]
|
8.126, 76 Ton CO2
[0,165%]
|
|
Water
efficiency
|
8
|
1.576.800.000 m3
[20%]
|
54.476,20 m3
[0,00345%]
|
|
Reduction
of water pollution load
|
1
|
|
4.705, 40 Ton/m
|
|
Biodiversity
|
4
|
1.600.000 Ha
[21%]
|
5 Ha
[0,000313%]
|
|
70 Million Ha
[24%]
|
23 Ha
[0,0000329%]
|
|
25 Species
[52%]
|
3 Species
[12 %]
|
Following Table 5. of Tarakan Field contribution of environmental
management derived from company strategies implementation; both from operation
and CSR practice. The information shows Tarakan Field has been doing business
that not causing harm for environment and communities around company�s
operation area. Meanwhile, Tarakan Field has been supporting Pertamina
commitment for doing energy efficiency as well as SDGs agenda. By being
proactive in environment preservation and community development, Tarakan Field
has been achieving several appreciations.
Table 5.
Tarakan Field Achievement in Environment and Social Responsibility
|
`Achievement
|
Year
|
Information
|
|
PROPER
|
2022
|
Achieve gold rank
|
|
2021
|
Achieve gold rank
|
|
2020
|
Achieve green rank
|
|
2019
|
Achieve green rank
|
|
Indonesia Green Awards
|
2022
|
Plastic waste management program
|
|
2021
|
Endemic plant conservation program
|
|
2020
|
Integrated waste management program
|
|
2019
|
Mangrove and proboscis conservation program
|
|
North Kalimantan Province Regional Innovation Awards
|
2021
|
Innovation of plastic recycle to environmentally friendly
seaweed buoy
|
|
Environment Management System
|
2022
|
ISO 14001:2015 certification
|
|
2019
|
ISO 14001:2015 certification
|
|
Patent
|
2022
|
Green energy for oil pump installation
|
|
2020
|
Digitalizing employee health status to minimizing paper use �My
Health�
|
In social and environmental shear zone, business is working on
environmental literacy and training issues. In the previous discussion, CSR
Program of Tarakan Field always have concerned about environmental
preservation. Applicate 3R principle in waste management system is triggered
community�s creativity. In Tarakan Field CSR Program Kubedistik, KSM Ramah
Lingkungan and Aliansi Kerja Bebas Sampah, company assisted beneficiaries to
create useful product or tools to meeting the needs of communities.
First is Kubedistik with their environmentally friendly canting
which made from used carton. This is not only decreasing a waste heap, but also
widening a freedom of creation. Because, before Kubedistik made their own
canting, they purchased from Java Island which geographically far and need
longer time for shipment process. The second one is environmentally friendly
seaweed buoy which made from plastic waste. This helps minimalizing plastic
bottle use for seaweed buoy which has short durability. The last one is KSM
Ramah Lingkungan who�s producing environmentally friendly fuel for Tarakan
garbage transport vehicle. Moreover, to implementing a sustainable CSR Program,
Tarakan Field ensure that the program bring out an economic value for
stakeholder, community and company itself. It leads us to the last shear zone
of three principles of sustainability.
Figure
4. Pertamina
Receive Awards Charter for Contributing in SDGs
Following Figure 5, Pertamina was being appreciated for their
contribution in SDGs. This automatically increase Pertamina position as
reputable company who�s commit to bring in value for stakeholder, community,
and company itself. Having this kind of reputation, Pertamina would gain more
trust to get financial funding and attract investor. In the same way, the
degree of trust between a corporation or industry and their external
stakeholders is likely to be a key factor determining their long-term
sustainability.
The Measurement of CSV in Tarakan Field
Tarakan Field measurement method would divided into those three
pillars combined with Porter and Kramer CSV concept. First, it has to bring in
a value which are economic and societal benefits relative to cost. Second, CSR
practice is integral to competing and profit maximization. The third one is CSR
practice is internally generated with company specific. Which all of those lead
us to the last one� CSR impact is realigning with the entire company budget.
For environment or planet pillar, Tarakan Field using Life Cycle
Assessment (LCA) approach to calculate analyzing environmental impact of
Tarakan Field business process. Following the assessment process were
identified that 18.613,70 GJ of energy efficiency, this achievement also
received a charter certification from a regional representative of Ministry of
Energy and Mineral Resource in 2022 for being proactive in efficiency energy
agenda. Contribute in emission reduction and the absolute calculation result is
4.719,61 Ton/ CO2eq, it received a charter certification from a regional
representative of Ministry of Energy and Mineral Resource in 2021 for being
proactive in emission reduction agenda. However, in particular the result of
CSR impact in environmental pillars were 16,9 Ton/ CO2eq emission reduction,
the reduction of carton waste by 30 Kg and 3,3 Ton plastic waste reduction.
Figure
5.
Conflict Record of Tarakan Field
For people pillars, Tarakan Field was taking seriously both in
internal and external relation. It purposely to not cause social issue such as
demonstration, asset facilities and business operation sabotage. Even located
in high population area, for the last three years Tarakan Field industrial
conflict was nil recorded.
On those papers stated that, �There has never been a conflict�
between company and communities or stakeholders. Therefore, Tarakan Field has
been not pulled out cost accidents or conflict. Quite the opposite, company has
been maintained stakeholder engagement around that location through CSR
program.
Figure
6.Tarakan
Field Security Data Recap
Figure 7 shows that the incident of thefts has decreased in the
last two years. Thefts incident usually steal Tarakan Field asset such as wire,
pipe, SRP unit, and supply chain inventory. These acts have potential to give a
domino effect in company business operation. The missing tools would cause an
error operation process, and matter worse causing harm for environment and
people around operation area. Therefore, when the situation is escalated, it
might cause the termination of business operation� and also damaging company�s
reputation which both of situation brings out a company loss.
Figure
7. Production
Performance of Tarakan Field after Reactivation Program
Following figure 8. Tarakan Field strategy to maintain production
performance through reactivation program achieved a good success. As announced
before, the potential of suspended well were located in high population area.
However, it works seamlessly not only attributed by engineering innovation, but
also influenced by company good reputation of environment and social aspect.
This achievement helps company gain more revenue through reactivated suspended
well.
Another positive impact for communities and stakeholder by doing
CSR was the realization in social development and welfare. As it stated before,
Tarakan Field CSR program is integral with company specific as well as SDGs
agenda. In regional scale, it�s corresponding with the needs of stakeholder and
community around company�s operation area. The economic and societal value
invented by Tarakan Field CSR program would described below.
Number of direct beneficiaries is 58 people and 200 people
indirect beneficiaries such as other beneficiaries that collaborate with
Kubedistik like KSM Ramah Lingkungan, Kelingan and Bank Sampah Karya Bersama.
Kubedistik Program existence also gives a multiplier economy for local tailor,
printing business, expedition, etc. Tarakan Field community development program
contributes in SDGs agenda verified by DKPU ITS in year of 2022.
1.
Contribute in
SDGs 1.4.1 indicator; access of basic services for household proportion, 0,002319%
of 23% National Medium-Term Development Plan Target
2.
Contribute in
SDGs 3.8.1 (a) indicator; unmet need of health services, 20,71% of 23% National
Medium-Term Development Plan Target.
3.
Contribute in
SDGs 4.1.1 (a) indicator; proportion of children and teenager to achieve basic
standard education, 0,000317% of 57% National Medium-Term Development Plan
Target.
4.
Contribute in
SDGs 6.3.1 indicator; household liquid waste was securely managed, 18,2 Ton
parameter
5.
Contribute in
SDGs 8.3.1 (a) indicator; percentage of MSME access to financial services,
0,05% of 20% National Medium-Term Development Plan Target.
6.
Contribute in
SDGs 8.5.2 indicator; open unemployment rate based on gender and age group
0,00414% of 23% National Medium-Term Development Plan Target.
7.
Contribute in
SDGs 11.6.1 (b) indicator; management of national waste, 0,04254% of 22%
National Medium-Term Development Plan Target.
Tarakan Field social investment was bringing in an advantage
return of company�s social position. Start from 2021, Tarakan Field started to
calculate the return of social infestation of community-based CSR Program� in
particular Kubedistik Program, because only this program which has already
practiced more than two years. This was done by third party whom has
qualification for doing SROI study.
The framework of SROI method was a development measurement from
cost benefit analysis, social accounting and social audit. It aims to capture
social value through conversing social objective into finance and non-finance
calculation (UGM, 2022).
There were four phases of SROI measurement process first, decided
a scoop of analysis and identify a key stakeholder. Secondly, Mapping outcome
through SROI logical framework; input, activity, output, outcome and impact.
After that, this study was proving and providing value to capture achievement
indicators, how it collected, who�s the informant, and the sustainability of
social transformation (outcome). An in the fourth phase is to calculate and
establish the impact of social investment. And to prevent an overclaim of
program and/or the other party, this study adjusts with deadweight,
attribution, displacement and drop off. In final calculation, this study was
adjusting monetary value with net present value, so it was not affected by
inflation.
�Total amount of Tarakan
Field social investment in Kubedistik was 487,297,500 IDR for program
implementation. After that the output and outcome of Kubedistik were brings in
a social value for company� and converted to economic value. Total amount of
the return of investment was 1,053,245,493 IDR� which means after 1 IDR of
investment, Tarakan Field gain 2,2 IDR for the return of investment.
CONCLUSION
In summary, PT Pertamina EP Tarakan
Field's Corporate Social Responsibility (CSR) initiatives have played a crucial
role in generating both societal and economic benefits for various
stakeholders. By strategically focusing on community development within the
framework of CSR, the company has fostered positive relationships, decreased
security issues, and streamlined operational costs. Tarakan Field's adaptation
to a more comprehensive CSR approach, emphasizing economic and societal
benefits over traditional philanthropy, has been notably successful. Using the
Social Return on Investment (SROI) method, they have achieved an impressive
return of 1:2.2, showcasing the effectiveness of their CSR efforts. Moreover,
aligning CSR strategies with company objectives, such as energy efficiency and
emission reduction, has led to substantial environmental gains, including a
significant reduction in CO2 emissions. In essence, Tarakan Field's CSR
practices, anchored in creating shared value, have not only enhanced relationships
with stakeholders and communities but have also yielded substantial economic,
social, and environmental advantages. By persisting in aligning their CSR
initiatives with specific corporate goals and sustainable development
objectives, Tarakan Field is poised to continue making a significant positive
impact and contribute to a more sustainable future.
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