Providing a Positive Impact on Riau Province, Pertamina Hulu Rokan Receives Appreciation from the Provincial Government
Pekanbaru, July 24, 2024 - PT Pertamina Hulu Rokan (PHR) presence in the Rokan Work Area (WA) has been appreciated by the Riau Provincial Government. PHR is considered to positively impact Riau, especially in boosting economic growth, which has led to increased community welfare.
It was conveyed by Baharufahmi, Head of New and Renewable Energy at the Riau Energy and Mineral Resources Agency, representing the Riau Provincial Government at the Supplier Engagement Day 2024 event with the theme 'Collaboration and Partnership Spirit for Operational Excellence and Anti-Bribery,' on Thursday (18/7/2024) in Pekanbaru. The event was attended by more than 500 partner companies and received appreciation from the Riau Provincial Government.
Baharufahmi stated that the event was a significant step in enhancing synergy between PHR and its partners, as well as promoting economic growth in Riau Province.
"We hope that we can all focus and synergize on the upstream oil and gas industry in 2024 to benefit to Riau Province through revenue sharing, 10% Participating Interest (PI), and multiplier effects, especially for the communities around the operational areas. Over the past three years, we have received good news that local vendor utilization has increased, and PHR has a strong commitment to occupational health and safety (OHS)," he said.
Bayu Surya, Head of Labor Supervision at the Riau Manpower Office (Disnaker), added that PHR’s presence in Riau is a significant potential for the province's progress. "Collaboration and partnership are good synergies for PHR's operations, and we support smooth operations," he said.
According to data from the Central Statistics Agency (BPS), the Gross Regional Domestic Product (GRDP) per capita of Riau Province with oil and gas at current prices has increased over the past three years. It rose from IDR 129.74 million in 2021 to IDR 151.26 million in 2022 and to IDR 154.52 million in 2023.
In terms of real Gross Regional Domestic Product (GRDP) per capita, measured at constant prices, there has been an increase from IDR 78.32 million in 2021 to IDR 80.77 million in 2022 and further to IDR 83.07 million in 2023
BPS data also shows that the economic contribution of oil and gas-producing regions significantly impacts Riau's economy. Riau's economy still heavily depends on crude oil, which is found in several districts. One of the most significant contributors to Riau's economy from crude oil is Bengkalis Regency, which contributed 16.39% to Riau's GRDP in 2023.
Other oil and gas-producing districts/cities include Siak (10.68%), Kampar (10.39%), Rokan Hilir (9.21%), Pelalawan (6.85%), Indragiri Hulu (5.49%), Rokan Hulu (5.07%), and Dumai City (4.76%).
The EVP of Business Support of PHR WA Rokan, Irfan Zaenuri, expressed appreciation to the partners for their contributions and support in achieving outstanding company performance. He emphasized PHR's commitment to prioritizing transparency, accountability, and good corporate governance (GCG) in its partnerships.
"PHR Rokan WA could not achieve success without the support of its partners. Supplier Engagement Day 2024 is a commitment by PHR to maintain communication with partners and to socialize policies, guidelines, and regulations to partners in Rokan WA," said Irfan Zaenuri.
The Supplier Engagement Day 2024 was also enlivened with various activities, such as product and service exhibitions from partners, seminars and talk shows on upskilling for partners, supplier recognition awards, socialization on corruption prevention from the Riau High Prosecutor's Office, IOG e-Commerce socialization, PADI UMKM socialization, and coaching clinic booths for SMAP (Anti-Bribery Management System), GCG (Good Corporate Governance), ISO SMT, CIVD (Centralized Integrated Vendor Database), CHESM (Contractor of Health Environment and Safety Management), TKDN, Vendor Development Program, digital procurement, finance logger & tax, and banking. The event also featured exhibition booths and sales of various products from PHR's fostered MSMEs, including crafts and food.
Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that Pertamina encourages all its groups to enhance collaboration with stakeholders, including in the operational areas of Rokan Riau, to support the company's performance while boosting the local economy through oil and gas resources utilization. The company also appreciates PHR's initiative in organizing the Supplier Engagement Day 2024 as a communication platform with local partners to maintain integrity in supporting company operations.
ABOUT PHR ROKAN WA
PT Pertamina Hulu Rokan (PHR) is a subsidiary of Pertamina engaged in the upstream oil and gas business under the Upstream Sub-holding, PT Pertamina Hulu Energi (PHE). PHR was established on December 20, 2018. Pertamina was entrusted by the Indonesian Government to manage the Rokan Work Area (WA) starting August 9, 2021.
Pertamina assigned PHR to carry out the transition process from the previous operator. The transition process was conducted safely, smoothly, and reliably. PHR will continue managing the Rokan WA for 20 years, from August 9, 2021, to August 8, 2041.
The Rokan WA operational area covers approximately 6,200 km² across seven districts/cities in Riau Province. There are 80 active fields with 11,300 wells and 35 gathering stations. The Rokan WA produces a quarter of the national crude oil or a third of Pertamina's production.
In addition to producing oil and gas for the country, PHR manages social and environmental responsibility programs focused on education, health, community economy, and the environment.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**