Oil Refinery Megaproject Provides Hundreds of Thousands of Employment

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 203.Pers/04/SJI/2020

Date: 10 June 2020

Oil Refinery Megaproject Provides Hundreds of Thousands of Employment

The government is confident the continuation of the megaproject Refinery Development Master Plan (RDMP) and Grass Root Refinery (GRR), which has become a National Strategic Project (PSN), will make wide impacts on the state economy. One of these impacts is creation of employment.

"The development of these refineries will provide employment for at least 15 thousand workers (per project) with varying qualification," said Secretary General of National Energy Council Djoko Siswanto at a webinar discussion titled 'Human Resource Qualification for the Operation of Indonesia's Megaproject Refineries' on Tuesday (9/6).

Besides employment, continued Djoko, the more important issue of refinery development is the energy security aspect which forms the basis for development capital in boosting economic growth. "Hopefully, refinery development will boost our economic growth, which according to the National Energy Policy, functions as development capital," he stated.

VP Human Capital Management Downstream of PT Pertamina, Karantina Marhaeni, said the need for manpower in the megaproject was relatively large. Until May 2020, realization of employment during the construction phase at RDMP Balikpapan was 5,113 workers, RDMP Cilacap 300 workers, and GRR Tuban 300 workers.

"Over time, the total employment will reach 110-150 thousand because each project needs between 11 and 15 thousand workers at peak time," explained Karan.

Worker hiring, continued Karan, is carried out by Pertamina partners, either Joint Operation (JO) or other supporting companies, with various special expertise. "For job positions that do not need special expertise, we encourage our partners to give priority to local workers under project-based hiring," she stated.

To improve the skills of local workers, Pertamina forms cooperation with the local authority and the Employment Service Office. "This is to guarantee that the local human resource can join the projects being worked on in their area," Karan said.

For post-construction, Pertamina will need 300 additional operators for developing Refinery Unit V Balikpapan and 1,000 workers at GRR Tuban.

Responding to the disruption challenge in the energy sector, Karantina explained the qualification of human resource in the oil and gas industry would always be adjusted to the conditions of the times.

"Knowing the challenges that the oil and gas industry will face in the future, particularly in terms of supply and demand, Pertamina is expected to be more adaptive to any situations, including regulating business uncertainty," said Karan.

In general, Karan explained, oil and gas companies considered three big aspects in looking for future human resource, namely having technical competency, soft skill capacity (leadership competency), and the ability to understand corporate values or integrity made up of the following characteristics: agile, customer centric, collaborative, and innovative.

"In Pertamina, the key is that every human resource is expected to grasp the situation and have flexibility of idea especially because technology develops rapidly so that we no longer have the luxury in terms of time," Karan concluded. (IY)

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