Case of Conoco Phi l i ps

Lately, the frequency of illegal tapping of oil in Indonesia is higher. For an example, there is
an illegal tapping in Conoco Philips in South Sumatera. Its known that the person who do
that action are the local people, they made hole In pipe that pass their residences and
rubber plantation. Its more complicated to protect the pipe because of the location of that
pipe is controlled or owned by the local people.
Actually, the company has been working with the police to protect their assets. But its not
has any impact because of the illegal tapping by local people already existed hereditary.
Which means they are not really concerned with the existing law or punishment that they
will receive. Its also because some of the illegal tapping case is happened in old oil wells,
which has been used by people for many years. In the other word, this place looked like
belonged to local people even its a part of the company asset.
If the legal action is not considered as a solution for this case, the company should have an
initiation to be cooperated with the local people to protect their pipe. As we know, the real
owner of this place is them. Company needs to use CSR analysis based on Triple Bottom
Line approach, People and Profit. At first, the company should analyze the real motive or
propose from the local people doing that action. So from that, they will know what the next
step they should take based on local peoples need.
According to some sources the local people take the oil for their daily needs, which means
they will do that action continuously. So in this case, deal with money will not solve this
problem for long period time. Companies must conduct a program, which is working with
local people who generate profits for their long-term basis. CSR programs that may be
done is financing the planting of rubber trees in the area through which the pipes of the
company itself which is then processed by the local people, whose profits they can enjoy
themselves.
At the end the impact from this cooperation will made the local people more focus on how
they manage the trees in order to earn money. And at the same time they also help
companies to keep oil pipelines under the trees earlier. So there is a symbiotic mutualism
between companies and citizens. From make good social relationships with people around
it will also have a positive impact on companys profitability because of the program could
reduce the company's losses due to illegal tapping.
Reference :
http://www.gatra.com/fokus-berita/19846-hentikan-pencurian-minyak-negara.html






Amalia Husna Dita
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