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PT. Chevron Pacifi c IndonesiaChevron Indonesia CompanyChevron Geothermal Indonesia, Ltd.Chevron Geothermal Salak, Ltd.
The Power of Human EnergyChevron IndoAsia Business Unit
2
The world consumes more energy
than we can discover, and the
demand for energy is projected
to increase by 40% from 2010 to
2035*. Global energy demand is
growing significantly because of
population growth and improvements
to the quality of life.
Despite the declining reserves
and the existence of other energy
Source:
*EIA/DOE International Energy Outlook 2013
**Dewan Energi Nasional (DEN)
Energy Demand is Increasing resources to be developed, fossil
fuels such as liquids, coal, and natural
gas will continue to be the most
utilized energy.
Indonesia’s energy demand is also
expected to increase by up to 133%
by 2025 from 3.3 to 7.7 million Barrel
Oil Equivalent Per Day (BOEPD)**.
The country continues to face a
widening supply-demand gap due to
significant challenges in finding and
developing new energy resources.
At Chevron, we recognize that the
world needs all the energy we can
develop to support the economic
growth and human development
progress around the globe. We are
developing energy resources that
help build a secure and diversified
energy future.
3
The demand for global energy is projected to
increase by
40% from 2010 to 2035
Indonesia’s energy demand is expected to increase by up to
133%
by 2025
Indonesia’s energy demand increases by 2025 from
3.3 to 7.7 million BOEPD
4
55
We explore for, produce and transport
crude oil and natural gas; refine, market
and distribute transportation fuels
and lubricants; manufacture and sell
petrochemical products; generate power
and produce geothermal energy; provide
renewable energy and energy efficiency
solutions; and develop the energy
resources of the future, including research
into advanced biofuels which are vital to
sustainable economic progress and human
development throughout the world.
Our success is driven by our people
and their commitment to get results
the right way—by operating responsibly,
executing with excellence, and applying
innovative technologies and capturing new
opportunities for profitable growth.
Our diverse and highly skilled global
workforce consists of approximately
64,500 employees around the globe.
Providing Energy for Human Progress
Our vision is to be the global energy company most admired for its people, partnership and performance.
The foundation of our company is built on
our values, which distinguish us and guide
our actions. We conduct our business in a
socially responsible and ethical manner. We
respect the law, support universal human
rights, protect the environment and benefit
the communities where we work.
We invest in providing safe, efficient and
reliable energy supply to meet the world’s
energy demand. The investment which
has been supporting the government
host developed the energy potentials
and providing substantial benefits to the
country’s economy for decades.
As a company and as individuals, we
take great pride in contributing to the
communities where we live and work.
Chevron is one of the world's leading integrated energy companies. We are involved in virtually every facet of the energy industry.
6
Chevron's partnership with the people
and the Government of Indonesia can be
traced back to 1924, when the Standard
Oil Company of California (Socal),
now Chevron, dispatched a geological
expedition to the island of Sumatra.
Chevron has been Indonesia’s largest
producer of crude oil which delivers
approximately 40% of national production
from its operations in Riau and East
Kalimantan and provides electricity for
millions of Indonesians from its geothermal
projects in West Java. Our total cumulative
oil production of more than 12 billion
barrels has provided significant benefits to
the country for decades.
In the Philippines, Chevron has been
partnering with the people and the
Chevron IndoAsia Business UnitChevron plays an important role in delivering energy for Indonesia and the Philippines through Chevron Asia Pacific Exploration and Production under its IndoAsia Business Unit (IBU).
Government of the Philippines since
1972 and has become one of the largest
investors in the Philippines. Chevron holds
an interest in the Malampaya gas-to-power
project, the first natural gas development
and largest industrial project in the
Philippines.
Chevron’s geothermal operations in
the Philippines help make us one of the
world’s leading producers of geothermal
energy. Our innovations have helped
make the Philippines the second-largest
geothermal energy producing country in
the world, after the United States, and
we are exploring new opportunities for
geothermal power in the Philippines.
Through its subsidiaries, PT. Chevron
Pacific Indonesia and Chevron
Indonesia Company, we conduct oil and
gas operations. Chevron also manages
geothermal projects through Chevron
Geothermal Indonesia, Ltd., and Chevron
Geothermal Salak, Ltd., in Indonesia,
and Philippine Geothermal Production
Company, Inc., in the Philippines.
Our 6,300 highly-skilled, dedicated
employees and more than 30,000 business
partner employees in Indonesia and
the Philippines continue to deliver safe,
efficient and reliable energy on behalf of
the countries. Currently, about 97 percent
of IBU employees are Indonesian and
Filipino nationals.
7
>90years of partnership in Indonesia
Deliver about
40% of national oil production
>12 billion barrels oil of total cumulative production
8
Leading in Technology and Innovation
Chevron continues to invest in Indonesia
to apply advanced technology and
innovation to maximize oil recovery
from the mature fields. In our mature
oil fields in Duri, we use specialized
heat management techniques, such
as steamflooding and other enhanced
recovery technologies to coax heavy
oil. The steam-flooding technology has
significantly prolonged the life of our Duri
Field, which accounts for almost half of
Chevron’s production in Sumatra.
We collaborate with the Government of
Indonesia to study a variety of enhanced
oil recovery technologies in order to
economically recover more oil reserves
and sustain production at the mature
Minas field. We began applying water
injection technology in Minas in the
1970s. Since then, the secret to the
success of Minas has been “pattern
waterflooding”, or the injection of water
into the reservoir to help push available
oil to the surface. Our secondary recovery
techniques have made the field the
largest waterflood project in Southeast
Asia.
We are also piloting a chemical enhanced
oil recovery (CEOR) technology in the
Minas fields, an area in which Chevron
specializes, representing Chevron’s
ongoing efforts to apply innovative
solutions in support of Indonesia’s future
energy goals.
Chevron is a world leader in deepwater
developments and operates the first
deepwater project in Indonesia, the West
Seno field in East Kalimantan. Around the
world, we have safe, cost effective and
Technology plays a pivotal role in advancing all aspects of our business. It enables us to find new resources, overcome geological challenges and achieve the best and most cost-effective results.
timely delivery of numerous deepwater
development projects, including in the
Gulf of Mexico, offshore Nigeria, offshore
Angola, and offshore Brazil.
Our global expertise and capabilities in
managing world-class deepwater projects
will be used to develop Indonesia’s first
ultra deepwater natural gas project
which covers five fields: Bangka, Gendalo,
Gehem, Gandang and Maha at depths
varying from 3,000 to 6,500 feet.
At Chevron, we recognize that the world
needs all the energy we can develop.
We are leading the way in developing
geothermal energy as a clean and
renewable energy source, since it is
derived from the natural heat contained
within the earth.
Providing Energy for Human Progress
9
Piloting
Chemical Enhanced Oil Recovery (CEOR)
The world leader in
deepwater development
Leading in developing renewable
geothermal energy sources
Managing one of the world largest
steamfl oodoperations
Operating the largest
waterfl oodproject
in Southeast Asia
10
11
Energy resources development and environmental management must go hand in hand. We place the highest priority on protecting people and the environment in which we operate.
In Indonesia and around the globe, we
operate our oil, gas and geothermal
operations in accordance with applicable
environmental laws and regulations, and
recognized global industry standards.
We apply the same standards and best
practice in environmental management
and continue to seek new ways to minimize
our footprint and improve environmental
and social performance.
We have invested in a number of
environmental programs approved by the
government and have been recognized
as a leading industry which reduced air
emissions, produced water and solid waste
associated with our operations.
We continuously work hard to maintain our
reputation for world-class performance
through the disciplined application of
the Operational Excellence Management
System (OEMS). Our actions are guided by
the following two tenets: “Do it safely or
not at all” and “There is always time to do
it right”.
We have reduced air emissions from
operations by 70 per cent over the last
ten years and we have started a project
to eliminate produced water discharge
altogether from our operations. In the
Minas fi eld, we practice zero water
discharge, or Zewadi. We do not discharge
produced water into the environment,
but rather re-inject it back into the earth
as part of the effort to produce more oil.
By implementing Zewadi, we comply with
the environmental law and conserve the
environment.
In our offshore operations in East
Kalimantan, we continue our effort to
reduce fl aring or venting. This program
has successfully reduced greenhouse gas
emissions, by operating vapor recovery
and gas compressors so that the recovered
associated gas can be utilized as fuel gas
at these offshore fi elds as well as for gas
sale.
Geothermal power plants require minimum
land use and emit virtually no greenhouse
gases. Our geothermal operation in West
Java is the fi rst geothermal company to
be awarded Certifi ed Emission Reductions
(CERs) recognition from the United
Nations Framework Convention on Climate
Change (UNFCCC) in the energy sector.
This milestone recognizes Chevron and
Indonesia’s commitment to developing
clean renewable energy sources.
Protecting People and the Environment
12
Building a Workforce with World-Class Capabilities
We invest in developing our employees,
of whom 97% are Indonesian, through
various world-class training and career
development programs that help shape
the whole industry. We believe that
by investing in our employees we are
strengthening our organizational capability,
while at the same time developing a
talented Indonesian workforce to support
the national capacity development.
We have established a number of people
development and training programs
to ensure that our employees have all
the resources to enrich their personal
learning while continuously building our
organizational capability.
Horizons
The Horizons program is a competency-
based employee development program
that began as a pilot project in 2001.
The Horizons program has evolved over
the years to become truly global and
multidisciplinary in nature. Participants,
who are recent college graduates – or
those with fewer than fi ve years of work
experience, begin the fi ve-year program
upon joining Chevron and engage in its
three basic components: mentoring, job
rotation and technical training.
The program targets new Chevron
employees in the following technical areas:
Drilling and Completions; Earth Science;
Facilities Engineering; Health, Environment
and Safety; Information Technology;
Petroleum Engineering; Supply Chain
Management; and Business Development,
Planning and Commercial.
Career Development Assignment
Career Development Assignment (CDA) is
a development program intended to give
opportunities to develop and to retain the
“best talent” with proper knowledge and
skills in alignment with the organizational
business needs.
By attending CDA, the employees are
expected to obtain knowledge, skills, and
experience that help transfer technology
and enhance their professionalism. The
participants will also be exposed to a global
working environment in a multi-cultural
atmosphere and build a new network with
other high caliber professionals.
International Assignment
We continuously strive to provide our
Indonesian employees with opportunities
to develop their career and achieve
their goals through Chevron-sponsored
international assignments. The program
provides greater possibilities for our
employees to contribute to Chevron’s
worldwide operations and to bring global
capabilities and experiences when they
return to Indonesia.
To date, many Indonesian employees have
participated in this prestigious assignment
in various countries in different continents
around the globe, including the Americas,
Europe, the Middle East and Africa.
Employee Self Development Program
(ESDP)
We provide educational assistance
under our Employee Self Development
Program (ESDP) to support our employees
pursue higher education, including both
undergraduate and postgraduate degrees.
Through this program, employees
can improve their competency and
qualifi cations by taking formal education
at their own pace while they continue to
manage their jobs.
Internship Program
We believe that the future generation of
our global talent should be developed
earlier before entering their real jobs.
Chevron offers an internship program
that gives the students a three-month
apprenticeship in Chevron under a
University Partnership Program (UPP),
a global program developed by Chevron
in partnership with more than 100 world
class universities in 12 countries, including
Indonesia. Chevron partners with the
Bandung Institute of Technology (ITB) and
the University of Gadjah Mada (UGM).
Through this internship program, students
have the opportunity to apply their
knowledge, learn new skills, and build
networking relationships.
Chevron continues to believe that its employees are the most vital asset in the organization, enabling the Company to deliver its commitment to the people and the Government of Indonesia.
Providing Energy for Human Progress
13
14
Optimizing Energy Potential in Sumatra
PT. Chevron Pacific Indonesia
15
Chevron, through its subsidiary PT. Chevron Pacific Indonesia, operates three major fields in Riau: Duri, Minas and Bekasap, as well as managing Dumai wharf, the final terminal for oil transport.
export. The Minas Field was discovered in 1944, and commenced
production in 1952.
It took 17 years to reach the one billion barrel milestone in 1969.
In the 1970s, the first water injection technology was introduced
and applied in Minas. This cutting-edge technology successfully
boosted oil production. Just seven years after reaching one billion
barrels of oil production, in 1976, Minas recorded its second billion
barrels of oil production. In 1984, Minas reached the three billion
barrel oil production mark.
The 1990s saw the installation of a pattern waterflood method in
the Minas Field. Six new wells were drilled around every old well
in the center of the field. The wells were arranged in a hexagonal
pattern with one water injector surrounded by six producers.
Through this new method, Minas reached four billion barrels of oil
production by 1997.
We continue to manage extensive pattern waterflooding
operations at the Minas Field, and are working on a trial of
chemical enhanced oil recovery, in collaboration with the
Government of Indonesia.
The Bekasap area consists of a number of productive fields
producing a light crude type of oil. Chevron continues to study
intensively the potential of major Bekasap, Bangko, Kotabatak,
Balam and Petani fields and to carry out numerous development
programs through the application of advanced exploration and
production technologies.
Dumai Wharf
Crude oil from Chevron’s production fields is transported to
Dumai through a 600-kilometer long pipeline system to a tank
farm with a 5.1 million barrel storage capacity. From the tank farm,
oil is pumped to either the Pertamina refinery, onto oil tankers
at Dumai Wharf, or shared between them. Using high-capacity
pumps, Dumai Wharf can load four tankers simultaneously.
The Duri Field
In Duri, we operate one of the world’s largest steamflood
operations, the Duri Steam Flood (DSF), which employs state of
the art technology to recover heavy crude oil from the relatively
shallow reservoirs. Duri Field produces a unique type of crude oil,
famed by its brand name: Duri Crude.
The Duri Field was discovered in 1941 and operation commenced
in 1958, following the completion of a 25-inch diameter pipeline to
transport oil to the port of Dumai for sale. In the 1980s, as natural
reservoir pressures began to drop, production yields from Duri
declined dramatically. Then, through the marvel of an enhanced
oil recovery technology known as steam flooding, production from
the Duri Field was rejuvenated.
The Duri Steamflood project was dedicated by President Soeharto
on March 3, 1990, and achieved its peak production rate of
300,000 barrels of oil per day (BPOD) in 1994. A year later, the
landmark figure of one billion barrels of cumulative oil production
was marked. In 2006, the Duri Field recorded another milestone
by producing two billion barrels of oil.
To date, the DSF project has successfully developed 12
development areas. The first area - including all major supporting
facilities, namely gathering stations and steam generating stations
- was constructed in 1981. The DSF development, North Duri
Development Area 13 is progressing with the wells and facilities
development within the Duri Field. The first oil of NDD Area 13 was
produced on September 16, 2013. Chevron continues to develop
the Duri field as part of its commitment to support Indonesia’s
energy goals.
The Minas Field
The Minas Field is the largest oil field ever discovered in South
East Asia. It produces the world-renowned Sumatra Light Crude
(SLC) oil. Although Minas was the third oil field discovered in
our Sumatra operations, it was in fact the first to produce for
16
Going Deeper to Tap Energy in East Kalimantan
Chevron Indonesia Company
17
Chevron Indonesia Company (CICo)’s legacy started in 1968, when the Company signed its first Production Sharing Contract (PSC) for an offshore block located northwest of Sumatra. However, it was its second PSC, signed the same year, which established the Company. This PSC is located in East Kalimantan and covers both onshore and offshore concession areas.
Terminal, Penajam Supply Base and Pasir Ridge Balikpapan Office.
Crude oil and natural gas from the South Area are processed at
the Lawe-lawe Terminal.
The discovery of the West Seno Field marked a new phase
in energy development project in Indonesia: the oil and gas
deepwater development. The West Seno Field lies in Makassar
Strait PSC, with a water depth varying between 800 meters (2,400
feet) to 1,100 meters (3,400 feet).
We will bring our global expertise and capabilities to develop the
Indonesia’s first ultra deepwater natural gas project. This project
will be the deepest water depth development in Indonesia and
requires state-of-the-art deepwater technology and world-class
project management in order to safely and efficiently develop the
resources. The project covers five fields; Bangka, Gendalo, Gehem,
Gandang and Maha at depths varying from 3,000 to 6,500 feet.
In 1970, we discovered Indonesia’s largest offshore oil and gas
field, the Attaka Field, located in the Makassar Strait. Between
1973 and 1995, CICo also discovered the Sepinggan, Yakin,
Melahin, Kerindingan and Santan fields, all located off coast of
East Kalimantan. In 1996, the Company commenced exploration
in its deepwater development project in Makassar Strait, with the
discovery of the West Seno Field.
Our operations in East Kalimantan consist of three main areas:
North Area, South Area and West Seno, a deepwater project
in Makassar Strait. In North Area, we operate Attaka, Melahin,
Kerindingan, Serang and Sapi fields, as well as the Santan
Terminal. Attaka Field earned the world’s recognition as a giant
oil field is recognized as the largest offshore oil field in Indonesia.
Crude oil and natural gas produced from the North Area are
processed at the Santan Terminal. The natural gas is also being
transported to government-owned Bontang LNG Plant. In the
South Area, we run the Sepinggan and Yakin fields, the Lawe-lawe
18
Delivering Clean Renewable Energy
Chevron Geothermal Indonesia, Ltd.Chevron Geothermal Salak, Ltd.
19
We are developing geothermal energy resources that will help build a secure and diversified energy future. It is a clean and renewable energy source that can provide more than 90% of its generating capacity year after year, and can reduce reliance on fossil fuels. Today, we operate more geothermal energy facilities than any organizations, public or private.
In 2005, we achieved a 377 MW generating capacity, which
marked the Salak project as one of the largest geothermal
operations in the world.
Currently, our highly skilled CGS workforce consists of
approximately 231 national employees, supported by hundreds of
business partners.
Chevron Geothermal Indonesia, Ltd.
Chevron Geothermal Indonesia, Ltd., (CGI) supplies geothermal
steam to the 55 MW power plant operated by PLN. We also supply
geothermal steam and operate a total of 215 MW power plants,
supplying electrical power for the Java - Madura - Bali grid. We
started up Darajat geothermal project commercial operations,
located near Garut, West Java, with 145 MW installed capacity, in
November 1994. With the completion and upgrading of Unit III in
2009, the total capacity of Darajat reached 270 MW.
CGI is the first geothermal company to be awarded Certified
Emission Reductions (CERs) recognition from the United Nations
Framework Convention on Climate Change (UNFCCC) in the
energy sector.
This milestone recognizes Chevron and Indonesia’s commitment
to developing renewable energy sources. The significant result of
this program is in its reduction of greenhouse gases, through the
operation of a low-emission geothermal plant. Since December
2006, CGI has contributed a documented 4.2 million tons of
Certified Emission Reductions (CERs).
Currently, CGI is supported by more than 277 dedicated skilled
employees and an additional several hundred business partner
employees.
Chevron was a pioneer in modern times, beginning its geothermal
operations during the 1960s with the development of the Geysers,
the world’s largest geothermal field, north of San Francisco,
California.
In the 1970s, two discoveries in the Philippines led Chevron to
the development of the Tiwi and Makiling-Banahaw (Mak-Ban)
geothermal projects in Luzon.
Chevron detected worthwhile geothermal potential in the Salak
and Darajat fields, in mountainous West Java, during the 1980s,
thus expanding our historical presence in the oil & gas business in
the Republic of Indonesia since 1924. We began commercial power
generation from geothermal steam in the 1990s, and currently
produce steam and electricity equal to 647 MW. This represents
about 50 percent of Indonesia’s total geothermal production,
sufficient to power approximately three million homes.
Chevron’s combined geothermal operations in Indonesia and the
Philippines supply a total of 911 MW of installed capacity, enough
clean and sustainable energy to meet the needs of around 4.2
million homes in the two countries. Geothermal development
promises a huge, long-term resource of heretofore untapped
energy. As Chevron continues to pursue geothermal opportunities,
we stay at the forefront of delivering clean, renewable energy to
our communities.
Chevron Geothermal Salak, Ltd.
Chevron Geothermal Salak, Ltd. (CGS) supplies geothermal steam
to generate electricity from the 180 MW power plant operated by
PLN, Indonesia’s state-owned electricity company. We also supply
geothermal steam and operate 196.8 MW power plants generating
electricity for the Java-Madura-Bali grid. An initial supply of
steam was channeled in 1994, thus commencing our commercial
production, with 110 MW delivered to PLN.
2020
Chevron embraces gotong royong that
means offering assistance, sharing
burdens and working with others.
Everywhere we work, we partner
with governments, non-governmental
organizations and community to build
productive, collaborative, beneficial and
lasting relationships, understand their
needs and priorities, manage the impacts
of our operations and develop strategic
social investments programs which create
sustainable values. These concepts are
embodied in The Chevron Way, and at
its heart is our vision ... to be the global
Advancing Partnership and Empowering CommunitiesFor decades, Chevron has been focused on the same goal – safely developing reliable energy to support the country’s economic growth and development and improve the quality of life in areas in which we operate. We have learned that Chevron’s business success is strongly linked to the progress of society.
Our programs provide access, opportunity and capability for hundreds of thousands of people, to support them to become self-reliant communities.
energy company most admired for its
people, partnership and performance.
Chevron has been contributing to the
economic and social well-being of the
people in Indonesia since the 1950s,
because we have learned through decades
of experience that our business success
in deeply linked to society’s progress and
local economy.
Our social investments cover from Aceh
to Papua, with a significant focus on
health, education and vocational training,
economic development, environment
protection and disaster rehabilitation,
aim to create prosperity then, now and
generations to come.
We strive to remove barriers to economic
growth, promote healthy communities
and improve access to health care. We
boost local economies, increase incomes
and improve livelihoods in three primary
ways: by creating jobs and developing local
workforces, supporting local businesses
and leveraging our employees and assets.
21
22
Advancing Partnership and Empowering Communities
Providing Access and Support for Health CareChevron helps promote healthy communities and improve access
to health care aimed at eradicating diseases.
Funded
to fi ght AIDS,
Tuerbculosis and Malaria
in 2008
Carry out
supplementary feeding
activities for around
in Minas for several years
The HIV and AIDS
awareness campaign program
has successfully reached
in 2011
25,000youngster
$30 million 400
infants
23
Chevron helps promote healthy
communities and improve access to health
care aimed at eradicating diseases.
We run a number of programs to promote
access to basic human needs, including our
partnership with the Global Fund to Fight
AIDS, Tuberculosis and Malaria. Chevron’s
$30 million commitment in 2008 has
funded programs to fi ght these diseases in
six countries, including Indonesia and the
Philippines, as well as Thailand, Nigeria,
South Africa and Angola.
In Indonesia, Chevron plays an active role
in combating HIV and AIDS as part of a
comprehensive program that includes
education and information initiatives,
and specially designed local programs.
We support comprehensive awareness,
prevention, voluntary testing and
counseling services, treatment and an
anti-discrimination approach for all our
employees and their family members. We
also collaborate with local and national
government as well as non-governmental
organizations to organize and participate
in HIV and AIDS prevention and awareness
campaigns for surrounding communities
Desa SIAGA, meaning “Alert Village”,
stands for SIap (ready), Antar (take,
transport), jaGA (stand by or guard). The
SIAGA, or “alert”, initiative advocates
that everyone should play a part in
helping to save mothers' lives. In addition,
we also carry out supplementary feeding
activities for around 400 infants in Minas,
distributing healthy green bean porridge,
ready-to-drink infant formula, baby
biscuits and milk.
We also offered health and nutrition
types of trainings to increase the capacity
of community health care center’s
cadres in several districts in Riau, East
Kalimantan and West Java as part of our
effort to enhance the quality of health
care services.
We also partnered with the Habitat for
Humanity (HFH) Indonesia in upgrading
the quality of life of 250 pre-welfare
families in Tanah Abang, Jakarta and
Mauk, Tangerang by implementing a
home renovation as well as sanitation
and clean water facilities.
throughout our operations in Riau, East
Kalimantan, West Java and Jakarta.
In 2007, we became a founding member of
the Indonesian Business Coalition on AIDS.
We believe that the business community
plays a vital role, working together to
adopt the best practices for preventing the
spread of HIV and AIDS, starting in our own
workplaces. We also helped establish the
“I Wanna Live” HIV and AIDS awareness
campaign for students and youth in West
Java. The program has successfully
reached more than 25,000 youngsters.
We support a series of health programs
with emphasis on mother and child. In
the Minas and Penajam Paser Utara, we
have worked together with our partners
to sustainably improve the health of
pregnant women, postpartum women and
their infants by enhancing the community
capacity and access to better quality
maternal and newborn health services. We
also help them prepare for childbirth and
obstetrics and newborn complications,
using the already tested community
engagement approach known as Desa
SIAGA.
24
Chevron’s school infrastructure
construction and renovation program helps
improve school facilities in remote areas
located near our operational areas in Riau,
East Kalimantan and West Java. We have
helped establish schools in many isolated
areas, including Sungai Rangau, Pauh-Libo,
Pematang Pudu, Jiat, Rangau, Petani and
Pematang Pudu and Minas Barat in Riau,
as well as renovating numerous classrooms
in Marangkayu District, East Kalimantan,
Samarang and Pasirwangi in Garut, and
Kabandungan and Kalapanunggal in
Sukabumi, West Java.
We also support the education of the
Sakai people, an indigenous tribe in Riau.
We supply books, provide incentives for
teachers and offer educational grants to
thousands of Sakai children through our
Beasiswa Anak Asuh Sakai (Sakai Foster
Children Scholarship) program.
Politeknik Caltex Riau
In 2001 in collaboration with the Riau
provincial government, we established the
first polytechnic institution in Riau, the
Politeknik Caltex Riau (PCR), to train local
students for jobs in the industrial sector.
The polytechnic now has some 1,500
students enrolled and offers a curriculum
to match the province’s business needs
and contribute to its economic growth.
Overall, PCR offers eight diploma programs
– computer engineering, electronic
engineering, telecommunications
engineering, mechatronics, accounting,
multimedia IT engineering, industrial
information systems and advanced
telecommunications engineering. Since the
program's founding, approximately 2,000
students have completed their studies at
PCR.
Darmasiswa Chevron Riau Scholarships
Chevron established the Darmasiswa
Chevron Riau scholarship program in
2001 to aid talented high school students
in the province to continue their college
education. Working together with
provincial and district/municipal education
agencies, Chevron conducts a defined
Our investments in education and training contribute to local development and build constructive
relationships that improve our ability to conduct business. Education has been a focus for Chevron
in Indonesia, dating back to 1957 when we established the first state senior high school, SMAN 1, in
Pekanbaru, Riau.
Advancing Partnership and Empowering Communities
Investing in Education and People Development
25
selection process each year to identify
students with strong potential. Students
who are selected are given the opportunity
to attend some of the most prestigious
colleges in Indonesia, such as the
University of Indonesia, Bandung Institute
of Technology, Gadjah Mada University
and Padjajaran University. To date,
approximately 850 outstanding students
have benefited from this program.
Vocational Training for Youth and
School Dropouts
Throughout our operations in Riau, as
well as in East Kalimantan and West Java,
in collaboration with local governments,
non-governmental organizations, youth
organizations, universities and vocational
schools, we established Vocational Training
for Employment and Entrepreneurship
(VoTEE) program. The initiative is intended
to diversify the economy of the local
communities and to increase employment
opportunities by upgrading the skills of
young people, underserved students and
women.
The training courses vary from year to year
but generally include welding, automotive
repair, heavy-equipment operation,
carpentry, rigging, electrician, motorcycle
technician, audio technician air-conditioner
technician, entrepreneurship, batik and
craft making, beautician, sewing and
cooking. In Duri, in partnership with
Politeknik Caltex Riau, we also provide
selected graduates with an endowment
fund to start their own businesses. In
addition, we also offer accelerated learning
for achieving a high school diploma (Kejar
Paket C) for school dropouts who wish
to obtain their diploma certificate, in
Pamijahan, Bogor Regency and Pasirwangi
in Garut.
Since 2008, our educational SuperCamp
program in West Java has helped more
than 1,100 students, with about 95 percent
moving on to college.
Newspapers in Education: Training
Teachers and Students
Chevron partnered with several
organizations, including The Jakarta
Post Foundation and the Newspaper in
Education Institute, in a unique program to
teach English. The program is based on the
idea that using the newspaper as a living
textbook can make teaching and learning
English enjoyable, interactive and relevant.
This program has helped enrich English
instruction for more than 5,400 students
and 700 teachers through workshops
as well as reaching more than 12,000
students through various edutainment
competitions from 100 schools in 25 cities
over eleven provinces across the country.
Indonesia Mengajar
We partnered with Gerakan Indonesia
Mengajar (the Indonesia Teaches
Movement) to support seven Pengajar
Muda (young teachers) working in
elementary schools in seven remote
districts in Fak Fak Regency, West Papua in
2013. In 2014, we continued our assistance
by supporting seven Pengajar Muda who
were deployed in elementary schools in
Bengkalis Regency, Riau.
University Partnership Program (UPP)
Chevron's University Partnership Program
(UPP) works with more than 100 college
and university partners around the world
to help attract and develop talented
students and teachers who can help
achieve a more technically proficient global
workforce.
UPP provides strategic and multifaceted
support, which includes scholarships,
grants, funding for faculty positions,
department gifts and laboratory
upgrades. We consider these educational
partnerships to be strategic investments
in the economic development of local
communities and the future of the energy
business.
Since 2006, we have provided our
university partners, Bandung Institute
of Technology (ITB) and the University
of Gadjah Mada (UGM), with graduate
fellowships, distance learning and
internship programs. We have also
improved their laboratory facilities and
created a series of guest lecture.
26
Advancing Local Business
Chevron supports programs that offer
training in small business development
and supply chain management. Our Local
Business Development (LBD) program is
intended to develop and transform small
local companies and cooperatives located
in our operational areas in Riau, East
Kalimantan and West Java into reliable,
professional and competitive suppliers
of goods and services, while at the same
time boost local economy. Since it first
launched in 2001, the program has
resulted in more than 6,900 contracts
have been awarded to Indonesian local
companies, approximately 47,500 jobs
have been created and with more than
$100 million of goods and services
purchased.
Through LBD workshops, budding
entrepreneurs are provided with training
in Health, Environment, and Safety,
procurement procedures, business ethics,
project management, technical aspects
and financial management to develop the
capacity of LBD partners.
In 2008, our LBD program was recognized
by the Ministry of Energy and Mineral
Resources with the bestowing of the
Padma Award for Social Solidarity.
Promoting Entrepreneurship
Our multi-year PRISMA program provides
small grants, capacity building trainings,
technical assistance and access to loan
through micro finance institutions to
local farmer groups, small businesses and
cooperatives in 11 regencies and cities in
Riau, East Kalimantan and West Java. In
total, PRISMA program supports more
than 1,100 beneficiaries. The program
covers assistance in various sectors,
including agriculture, fishery, processed
food commodities, creative industry in
the form of tenun (weaving) and batik
making as well as the establishment of
eco-cultural tourism villages.
We introduced an integrated farming
practice to the Sakai people in Riau by
providing them with agricultural, fishery
and livestock training as well as technical
assistance. In 2013, a cooperative was
established to better assist the Sakai
farmers in managing their fish and duck
farming and agriculture products as well
as product marketing and distribution.
Meanwhile, more than 800 farmers
in Darajat, West Java, benefit from an
integrated sheep breeding program,
which includes technical training in
cattle fattening, waste management,
biopesticide and biogas as well as micro
financing.
Advancing Partnership and Empowering Communities
Driving Local Economic Development
Chevron is committed to improving social and economic conditions wherever we operate, and our
focus on sustainable livelihoods and sustainable employment opportunities promotes self-sufficiency.
In collaboration with our partners, we identify programs to promote a better standard of living.
27
A group for people with disabilities and
women in Balikpapan is receiving training,
equipment, materials and marketing
help to produce environmentally-friendly
batik products. Similar assistance in
batik-making is also being offered to
a group of women in Rumbai through
the establishment of Cempaka Batik
House. Training and assistance in craft
production are also provided to women
in three different districts in East
Kalimantan. These women are trained
to transform non-recycled agricultural
and plastic waste into craft products,
such as purses, artificial flowers and tote
bags. In Dumai, we provide assistance to
Putri Tujuh weaving group, who produce
beautiful Siak traditional weaving cloth.
Started in late 2012, together with our
partner, we established a program of
which the main objectives are to increase
the income of local coconut famers and
coconut and palm sugar processors in
seven villages in Penajam Paser Utara
Regency, East Kalimantan, through the
applications of good agriculture and
processing practices. The program had
provided benefits to more than 280
and nearly 1,000 direct and indirect
beneficiaries, respectively. Some 40
small businesses have successfully
increased their income through the
reduction of production costs, product
diversification, and better product quality.
We have successfully established two
small and medium enterprise centers
(UKM) in Garut and Duri, which serve as
a learning and business consulting center
for small and medium-sized businesses.
The UKM Center in Darajat showcases
115 products made by 41 groups in the
area. The development program has
increased the community income by 40
percent. Meanwhile, Pusat Oleh-Oleh Duri
showcases nearly 100 products made by
more 110 beneficiaries.
We promote conservation efforts in
our Salak geothermal operations to
prevent further exploitation of the
forest. We support small and medium-
sized enterprises by offering training to
improve farming practices, which has
increased the harvest. In 2009, we helped
established three local cooperatives in
Salak, one of our geothermal operations
areas. In five years, the cooperatives
have provided loans to over 3,000 micro
businesses, with value over $500,000.
Assistance in Infrastructures
We have been supporting Riau
communities since the 1950s by opening
an isolated area of Eastern Riau through
the construction of a 180-kilometer
roadway, connecting Pekanbaru and
Dumai. We also connected this road to
the North Sumatra Province through the
Bangko region.
Another milestone in our contributions
is the construction of the Siak Bridge,
the first bridge over the Siak River
that connected the southern area of
Pekanbaru with the northern area in 1977,
as well as connecting the western part
of Sumatra (the West Sumatra Province)
to the eastern part (Dumai in the Riau
Province).
In 2012, we supported the 18th National
Games, the first ever to be held in Riau.
Our support included the construction
of Chevron Balai Tanjak Laksamana, a
multipurpose building at the Rumbai
Sports Complex. This 47,000-square-foot
facility can accommodate 1,500 to 2,000
spectators and will provide long-term
benefits for a variety of social activities.
We also helped promote the National
Games by setting up and managing the
main media center in the Riau Central
Library for journalists covering this
quadrennial event. The value of our
assistance for the 18th National Games is
estimated at approximately $6.4 million.
28
Advancing Partnership and Empowering Communities
Protecting Biodiversity and Conserving the EnvironmentOur social investment programs focus on biodiversity protection and environment conservation, with
emphasis on activities which contribute to local economic growth.
In Balikpapan, East Kalimantan, Chevron
pioneered a Domestic Waste Management
program that has helped create healthier
living conditions for 450 beneficiary
households. The program aims reduce,
reuse, recycle and replant, and can
produce 2.5 tons of compost fertilizer
monthly, which brings economic benefit by
generating additional income for women.
Responding to the success of this initiative,
the Government of Balikpapan Municipality
adopted the concept and has replicated
this program in 27 other sub-districts
within Balikpapan city.
We play an active role in rehabilitating the
Telaga Sari Urban Forest in Balikpapan
by establishing the Educational Forest
Center and taking part in tree plantings.
In 2013, we established a seedling nursery,
to ensure seedlings are safely grown to
a desirable size before being planted
at urban forest. For the past six years,
we have planted and replanted more
than 6,000 native trees. Meanwhile, in
Penajam area, we continue to support the
mangrove conservation area. Since our
involvement in 2003, we have successfully
re-established approximately 20 acre
of mangrove conservation area in the
southern part of Balikpapan city.
Chevron supports Indonesia's national
parks, conservation areas and other
environmental programs around the
country. In East Kalimantan, we helped
establish the Berau Marine Protected Area.
To help promote ecotourism, we worked
with National Geographic Indonesia to
produce a map of marine ecosystems
in the Berau Islands. This area includes
Derawan Island, home of the endangered
green turtle. In late 2014, we launched the
Maratua Ecotourism for Sustainable Small
Island program. The initiative promotes
economic welfare, community participation
in conserving biological diversity and
readiness in facing climate change.
2929
In partnership with National Geographic
Indonesia, we produced and disseminated
a map of Mount Halimun–Salak National
Park to increase public awareness of the
park's importance. We also produced the
"tourism triangle" map of Garut Regency
to encourage protection of natural and
cultural potentials in the area. We also
established Desa Wisata Ciburial, an eco-
cultural tourism village located in Garut,
which aim to preserve Garut local culture
and heritage while at the same time
increase the local community income.
Together with the Mount Halimun–Salak
National Park and Raptor Sanctuary
partnership network, we established the
Suaka Elang (Raptor Sanctuary). This
sanctuary has bird rescue operations and
educates the public about these birds
of prey and their habitats. In Riau, we
supported a migratory raptor inventory
on Rupat Island. In addition, we also
supported the endangered Sumatran tiger
population study to better mitigate the
potential human-tiger conflict in Duri area.
In late 2011, in collaboration with Mount
Halimun–Salak National Park, the Kehati
Foundation and local partners, we
established the Green Corridor Initiative,
a five-year program to help the local
community restore more than 1,250 acres
(5 sq km) of critical ecological zones
in the forested areas that connect the
ecosystems of Mount Halimun and Salak
National Park. This initiative aims to
plant at least 250,000 native trees over
five years and maintain a sustainable
environment for migratory animals
that are on the International Union
for Conservation of Nature's red list of
threatened and endangered species,
including the Javan leopard, the Javan
gibbon and the Javan hawk eagle.
30
Shaping the Future of Development
in Aceh
In response to the earthquake and tsunami
disaster that affected the northern part
of Sumatra in 2004, Chevron’s immediate
response was to provide assistance
including food, clothing, potable water and
$2 million raised by employees. In addition
to the immediate response assistance,
in partnership with the Government of
Aceh and various partners, Chevron also
provided longer term support through the
Chevron Aceh Recovery Initiative.
The company’s approach focused on
developing public-private partnerships to
deliver economic growth and capacity-
building programs through education,
vocational training, microenterprises
and small business development. Seven
districts and three cities in the Aceh
Province and the Nias Island benefited
from Chevron’s assistance, and more than
100,000 people in Aceh have been helped
by the company’s efforts to date.
Education and training are central to
building capacity and sustaining long-term
economic development in tsunami-affected
areas. Chevron and its partners have
invested in a number of focused education
and vocational training projects to address
both immediate and longer term needs,
including the foundation of the Politeknik
Aceh.
A joint initiative of Chevron, the
United States Agency for International
Development, and the Aceh-Nias
Reconstruction and Rehabilitation
Agency, Politeknik Aceh opened its doors
to students for the first time in 2008.
The 9,000 square meters, 450-student
facility was officially opened on February
23, 2009, by Indonesian President
Susilo Bambang Yudhoyono. Politeknik
Aceh offers degrees in mechatronics,
information technology, industrial
electronics and accounting.
Chevron has spent approximately $6
million on the polytechnic, fully funding the
construction of the facility. We contributed
a total of $14.7 million for disaster
recovery, which included the funding for
the polytechnic and roughly $9 million to
support long-term economic development
Chevron supports relief and recovery efforts in the aftermath of natural disasters in Indonesia. These
are some examples of how our public-private partnerships have helped restoring access to health care
and basic human needs, as well as long-term recovery programs.
Advancing Partnership and Empowering Communities
Lending a Helping Hand through Disasters Relief Program
31
and sustainable-growth initiatives. In
addition, we were able to use contributions
to secure $15 million in partner funding. For
instance, we partnered with the Indonesian
Red Cross to provide organizational and
human-capacity building for medical
staff; with JHPIEGO to provide midwifery
training in a cluster of villages in Aceh
Besar; and with the Indonesia Heritage
Foundation to provide teacher training and
to open 30 new preschools in Aceh.
Chevron Earthquake Recovery Initiative
We also provided immediate aid and
recovery support in the aftermath of the
natural disasters in Yogyakarta, West
Sumatra and West Java.
In response to the Yogyakarta quake in
2006, we helped rebuild the state-run
elementary, SDN Kalongan in Sleman,
Yogyakarta and provided technical
assistance to SDN 01 Bero elementary
school in Klaten, Central Java, during its
reconstruction.
We provided support to the victims of the
earthquake in West Sumatra that struck
in 2008. Chevron, its employees and their
families helped reconstruct the SDN 06 Aie
Angek elementary in Tanah Datar Regency.
Then in 2009, many parts of West
Sumatra, including the province’s capital
Padang, and West Java were affected by
another devastating earthquake. Using
the experience from Aceh and Yogyakarta,
we launched our Chevron Earthquake
Recovery Initiative, which, in addition
to providing emergency relief, focused
on recovery and reconstruction in the
education sector.
Two schools were selected for assistance,
SMKN 5 Padang technical vocational
school and SDN 21 Nan Sabaris elementary
school in West Sumatra. Meanwhile, in
response to the West Java earthquake,
Chevron helped rebuild SDN Cipanas
elementary in Sukabumi and SMA 23 Garut
high school in Pakenjeng. As a result of our
immediate response, students were able to
move back into their classrooms and out of
the emergency tents they had been using
as temporary classrooms.
32
Striving to Continue Supporting IndonesiaFor more than 90 years, Chevron has been a proud member of
Indonesian society. We have been partnering with the people and
the Government of Indonesia to deliver sustainable energy for the
country and are committed to continue supporting the livelihood of
the people of Indonesia.
Indonesia needs to maintain the energy supply from the current
declining assets to support its sustainable economic growth.
However, developing new energy resources is costly and may take
several years, requiring the Government of Indonesia to attract
well-capitalized investors with advanced technology and world
leading capabilities.
Chevron seeks to unlock Indonesia’s energy potential through
innovation, providing new oil from old fields and capturing
reliable power from the earth’s heat.
We continue to invest and bring our global experiences and
capabilities here in Indonesia.
Our dedication to collaboration and innovation supports our commitment to being the partner of choice. We believe that we can move Indonesia forward together.
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PT. Chevron Pacific Indonesia
Sentral Senayan I Office Tower
Jl. Asia Afrika No.8
Jakarta 10270, Indonesia
Sumatra office
Rumbai, Pekanbaru 28271
Riau – Indonesia
Chevron Indonesia Company
Sentral Senayan I Office Tower
Jl. Asia Afrika No.8
Jakarta 10270, Indonesia
Balikpapan Office
Pasir Ridge, PO BOX 276
Balikpapan 76102, Indonesia
Chevron Geothermal Indonesia, Ltd.
Chevron Geothermal Salak, Ltd.
Sentral Senayan I Office Tower
Jl. Asia Afrika No. 8
Jakarta 10270, Indonesia
35
A milestone in commitment was the construction of the Siak Bridge, the first bridge
over Siak River that connects Pekanbaru’s southern and northern part of Sumatra
(West Sumatra Province) to the eastern part (Dumai, in Riau Province).
Chevron IndoAsia Business UnitSentral Senayan I Offi ce TowerJl. Asia Afrika No. 8Jakarta 10270, Indonesiawww.chevronindonesia.com
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