CHAPTER III DISCUSSION 3.1 Overview of PT. Pertamina 3.1.1 Background of PT. Pertamina PT.Pertamina (Persero) is a biggest state-owned oil, gas and renewable energy company in Indonesia that established since December 10 th, 1957. PT. Pertamina (Persero) Center Office located in Jl. Medan Merdeka Timur No. 1A, Jakarta Pusat. Firstly, this company named PT.Permina then based on Principle Number 8 th 1971 the company changed its name becomes PERTAMINA. Pertamina strives to provide the best and a real contribution for the welfare of the nations in utilizing every potential of Indonesia. Besides, Pertamina has a commitment to create improvement and innovation in all operations, as demanded by global conditions. PT. Pertamina as Powerhouse of Indonesia needs support from stakeholders, government, and public in order to the business process can run successfully. Pertamina which has a slogan to be a world class oil and gas company is hoped can compete with Multinational Energy Company such as Exxon, Chevron, Shell, or BP. Nowadays, many problems that can attack reputation of a company, especially a big company like Pertamina. So, it is a duty of PR Practitioners to solve this problem. 20
21 Since established on December 10th, 1957, Pertamina has participated in the oil and gas business such as, upstream and downstream sector. Pertamina s upstream business is conducted in several regions in Indonesia and abroad include activities in the fields of exploration, production, and oil and gas distribution. To support the exploration and production activities, Pertamina also pursues technology and drilling service businesses, as well as other activities that develop geothermal energy and Coal Bed Methane (CBM). In exploiting oil and gas both within and outside the country, Pertamina operates either independently or through various partner cooperation arrangements, namely through Cooperation Operations (KSO), a Joint Operation Body (JOB), a Technical Assistance Contract (TAC), Indonesia Participating/Pertamina Participating Interest (IP/PPI), and a Joint Operations Board (BOB). There is two different periods about history of Pertamina, two of them are before and after UU No.22/2001. Before there is UU No. 22/2001 Pertamina has a special status as regulator of oil and gas based on law. Pertamina becomes an operator that monopole Indonesia s fuel industry, in downstream sector, as the only one operator of oil and gas. In the upstream sector, Pertamina sign contract with another company with Production Sharing Contract. Yet, there is a change after UU No. 22/2001 states all of oil and gas business in Pertamina regulated by government. Finally, Pertamina becomes an operator oil and gas. Upstream business opened for operators
22 that get a contract with government by ESDM Ministry and downstream business also opened for everyone that get license from government for entering Indonesian Market, for example: PGN (Perusahaan Gas Negara) compete with Pertamina and Total E&P in upstream and downstream sector. 1.1.2 Vision and Mission PT. Pertamina has a vision, becoming a world class national energy company and the mission is running business of oil, gas, new energy and seven renewable energies integrally, based on strong commercial principles. PT. Pertamina lowered becoming quantitative aspiration, and then becomes a big theme of the company. The Pertamina s aspiration in 2025 is becoming Fortune 100 that can energize around Asia with the earn about 200 billion USD/EBITDA 40 billion USD and becoming integrated new and renewable energy company. Besides, now, Pertamina is doing transformation process towards World Class National Energy Company. Semangat Terbarukan (Renewable Spirit) is Pertamina s tagline. Now, Pertamina is trying to achieve the Regional Leader target in 2018. It means Pertamina becomes market leader in Asia or it s upper than Petronas and PTT. Then, in 2023, Pertamina has a goal to be World Class National Energy Company that has capability like British Petroleum (BP), ExxonMobil, Total, Shell, and Chevron.
23 1.1.3 Pertamina Corporate Values Pertamina has established six corporate values which serve as guidelines for all employees in their effort to run the Company. The six corporate values are: a. CLEAN Managed professionally, avoiding conflicts of interest, zero tolerance of bribery, upholding trust and integrity. Based on the principles of good corporate governance. b. COMPETITIVE Being able to compete regionally and internationally, boosting growth through investment, establishing of a culture of cost consciousness and rewarding performance. c. CONFIDENT Contributing to national economic development, pioneering the reform of state owned enterprises, and enhancing national pride. d. CUSTOMER FOCUS Being customer oriented and committed to delivering the best service to customers. e. COMMERCIAL Creating commercially oriented added value, taking decisions based on sound business principles.
24 f. CAPABLE Managed by leaders and employees who are professional and talented with strong technical abilities and who are committed to building research capabilitiy and development. 3.1.4 Company Logo The development of philosophy and the visual appearance of Pertamina logo is the result of in-depth research and analysis undertaken to understand how the business environment and market operating at different levels. Based on convention of the workers and top management, a symbol or emblem is describing Philosophy, Vision, Mission and Aspiration Company. Image 1: Pertamina Logo Arrows symbol in front of PERTAMINA mean Pertamina organization symbolize aspiration to constantly move forward, advanced and progressive. The symbol looks like a monogram letter P which is the first letter of the word Pertamina. These three elements symbolize the island with different scale which is a form of Indonesia. The word Pertamina is the name of the company of PT. Pertamina (Persero) and it
25 is not an abbreviation or acronym, and writing should be black unless specified otherwise in the provision. There are three colors in Pertamina Logo, first is red. Red symbolizes the tenacity, explicitness, and bravery in facing the difficulties or problems. Blue reflects capable, believable, and responsible. The last one is green. Green symbolizes the energy resources that has been had by PT. Pertamina is abundant. 3.1.5 Pertamina Products and Services There are various PERTAMINA products consisting of fuel (BBM), non-fuel, gas, petrochemical products, and lubricants. Fuel (BBM) Petroleum products which consist of: Oil Gasoline Kerosene Oil Solar Diesel Oil Fuel Oil Special Fuel (BBK) BBK product consisting of: Aviation Gasoline (petrol aircraft) Aviation Turbine Fuel (fuel air-turbine aircraft) Bio Pertamax Bio Diesel
26 Pertamax Pertamax Plus Pertamina Dex Pertamax Racing Premium Fuel Subsidy Products Fuel Subsidy consisting of: Bio Diesel Premium Non-fuel Fuel instead of oil which consists of: Asphalt Lubricants (Lube Base Oil) Solvent (Solvent) In running their business Pertamina has many subsidiaries, they are; Petral, PT Patra Niaga, PT Pertamina Retail, PT Pertamina Trans Kontinental, PT Pertamina Lubricants, Korea Indonesia Petroleum Co. Ltd., PT Patra Dok Dumai (DL). Besides running in downstream sector (oil), Pertamina also has subsidiaries in gas sector, they are: PT Pertamina Gas, PT Nusantara Regas, PT Badak LNG, and the new one, PT Arun LNG. In Non-Core Business sector, Pertamina has PT Patra Jasa, PT Pelita Air Service, PT Pertamina Bina Medika, PT Tugu Pratama Indonesia, PT Pertamina Dana Ventura, etc.
27 3.1.6 Pertamina Achievements Pertamina has got so many excellent achievements. In 2013, Pertamina ranks 123 of Global 500 FORTUNE Best Company with 94.27 Score GCG; it means Pertamina got an excellent score. Pertamina also has added National Earnings, 9 Q in Rupiah (2013). It means Pertamina has more earning than PLN, BRI, and Telkom. The third is Pertamina won BUMN Innovation Award in 2014, Indonesia Most Admired Companies for 2011-2014, Best Company to Work for Asia in 2014. Recently, in May 2015, Pertamina got The Best Contact Center in the world in ICCA event.
28 3.1.7 Structure of Organization President Director & CEO Dwi Soedjipto Corporate Secretary Chief Audit Executive Chief Legal Counsel and Compliance Petrochemical Project Coordinator Director Upstream Director Refining Director Marketing and Retail Director Human Resources Director EBT (NRE) Director Finance Syamsu Alam Rachmad Hardadi Ahmad Bambang Dwi Wahyu Daryoto Yanni Handayan i Arief Budiman Image 2: Structure Organzation
29 3.2 Overview of Corporate Secretary Division 3.2.1 Corporate Secretary Corporate Secretary in PT. Pertamina is a division for running Public Relations activity. There are so many functions in Corporate Secretary, like, Media Relations, External Communication, Internal Communication, Brand Management, Data and Information, Corporate Social Responsibility (CSR), Compliance, BOD and BOC Support. There are so many roles of Corporate Secretary, such as: a. As a media or contact person between Director, Commissioner, Stakeholders, Government and Public. b. As an event organizer in secretariat sector for Director and Perseroan, also, as administrator in managing and saving documents related to company activity include RUPS, Risalah Rapat Direksi, Risalah Rapat Gabungan. c. As an executor in running multimedia communication strategy include coordinating the publishing of Annual Report, Continuously Report, Company Profile, and corporative brochures. 3.2.2 Corporate Secretary Framework Image 3: Corporate Secretary Framework
30 3.2.3 Corporate Secretary Organizational Structure Corporate Secretary Nursatyo Argo Secretary Rudang Mayang Manager Data & Informasi Ernayetty Corporate Comm. Investor Relation Compliance CSR BOD Support BOC Support Internal Comm. Capital Market External Comm. Corporate Action Media Relations Image 4: Corporate Secretary Organizational Structure Brand
31 3.3 Job Training Activities The purpose of doing the job training is to learn more about Public Relations both practically and theoretically. PT. Pertamina is a biggest state-owned oil and energy company that has so many PR Practitioner. Moreover, PT. Pertamina gets so many issues that can decrease Pertamina reputation. It can be a lesson for PR Practitioner to solve the existing issues becomes a good feedback to increase Pertamina reputation. So, I thought PT. Pertamina is the best choice for me to do my job training. The job training was started on March 2 nd till June 2 nd, 2015 in Central Office of PT. Pertamina which is located in Jl. Medan Merdeka Timur No. 1A, Jakarta Pusat. I did my job training in Media Relations Office. Media Relations is a part of Corporate Secretary Division that located on the 1 st floor of Perwira II Building. During the job training, I worked as an officer that starting their work from 7.00 am to 4.00 pm on Monday till Friday (Office Hour). When I did my internship program, I was mentored by Mr. Dofa Purnomo as Assistant Media Manger and Mrs. Indah Khairunisa as Contact Pertamina Officer. Basically, I worked and learned everything about PR practically because there are so many activities that I could do by a PR Practitioner in this company, such as; Press Conferences, Media Gathering, Press Release, Seminar, Advertising, etc.
32 I did my job training for three months. The first month, I worked in Media Relations Office. My job desks were holding press conferences, media gathering with internal and external public, and making press release. There were so many activities in Media Relations Office. Thus, I could role as a real PR Practitioner. During my job training, I rather understood about business world especially the role of Public Relations. I was not alone during did the job, I was helped by the officer and another interns. There were about seven internship students who did the job training in Media Relations Office. Besides, I worked in the office, I often visited some events outside. One of them is Press Conference Rio Haryanto Goes to F1 with Pertamina. In this event, I observed how a PR Practitioner can speak in front of the media and public to share about his/her company. I also could learn about how amazing a PR Practitioner in responding the questions from mass media. In the Media Relations Office, I also often joined the meeting with manager and media relations officer in facing the existing obstacles that related to PT. Pertamina. In the first chance, I joined the meeting about LPG 3 KG. I listened how media manager explain to one of the demonstrator who prosecuted about the rarity and the price increasing of LPG 3 KG. In the second day when I did my job training, I was asked by media manager to report a demonstration about LPG 3 KG that located in front of Perwira Building Office PT. Pertamina. The demonstrators
33 prosecuted the PT. Pertamina to lower the LPG 3 KG price in order to cause the rarity. For the second and third month, I replaced to Contact Pertamina Office. In the Contact Pertamina Office I worked as an outbound agent. Outbound agent is an agent that has duty to call the customer to confirm about products. During I becoming an outbound agent, I received some criticisms and suggestions. I learned about the characteristics of the customer, and I also learned how to handle the customer when they feel unsatisfied with our services. Not only called the customer, I also joined the Toastmaster International English Club. Every Wednesday I had a routine activity to join this club. I learned how to speak English well in business world. In the first time, I spoke in front of the officers from some divisions. In this club, we were asked to speak fluently. But, fortunately, I did not fell nervous at all. I was chosen as the winner of table-topic spoken. I was excited when I was being called to stand in front of the other officers. The last thing that I did in the Contact Pertamina Office was becoming a supporter in ICCA events. ICCA or International Contact Center Award is an event to find the best Contact Center of a company. In this event, I met so many great people. I also shared the knowledge and information from the participant.
34 3.4 The Problems Faced by PT. Pertamina As we know that Pertamina is a big company that can increase the exchequer of Indonesia. Although, there are so many state-owned companies in Indonesia, PT. Pertamina is the one which has the biggest contribution. Pertamina becomes an operator that believed by government to produce and manage their product for the peoples. So, if there is anybody says that Pertamina as a regulator in their business, I think it is a big mistake. It is stated in UU No. 22/2001, Pertamina becomes an operator oil and gas. Upstream business opened for operators that get a contract with government by ESDM Ministry and downstream business also opened for everyone that get license from government for entering Indonesian Market. Yet, behind the success of a big company, there are so many obstacles that faced by Pertamina. The obstacles are: a. The Increase of Competitors A company is usually faced some obstacles when they run their business. One of them is the increase of competitors. Pertamina is one of big companies which have so many competitors such as, Exxon, Shell, BP, and Petronas. The existing of competitors make Pertamina must compete firmly to get the attention of the customers. The competitors which come in to Indonesia, of course provide the best products and services.
35 The low price is also one of the best reasons for the competitors attract the customers. They provide the best quality with the low price. Of course, it is a chance for the competitors to persuade the customers in order to change their products. There is a case when Pertamina launch the new product Petralite as the substitution of Premium, because of the increasing price of crude. It causes pro and contra between government, Pertamina, and citizens. Finally, the competitors try to take this chance to promote their products with the cheap price. So that, Pertamina should work harder in order to not lose their customers. b. Customers Credibility The problem is not only the competitors but also the credibility of customers or citizens. Credibility is an important thing when a company runs their business. Customers credibility can influence what a company like. It is also can make misunderstanding between a company and customers if the credibility does not be created as good as possible. Pertamina as a state-owned company should be able to attract the customers. Although, many issues state that the most of companies in Indonesia doing the corruption. It is a challenge for Pertamina shows the ability to interest the customers or citizens. When a company has been believed by the customers to provide the best products and services, so that a company cannot lose this chance.
36 c. Customer Satisfaction Customer satisfaction is the good or the bad feeling of the customers with the products provided by the company. Customer satisfaction is the most important thing in business world. When the customers feel satisfied with the products, it means the company has given the best services for them. On the opposite, the customers will be unsatisfied when the company does not give the best services. It becomes a usual thing faced by the company. Pertamina as a big company, of course faces this problem. When there is a problem related to customer satisfaction, it must be the first that should be solved. I had a case related to customer satisfaction that I faced when I did my job training. On March, 3 rd, 2015 there is a demonstration in front of my office. The demonstrator prosecuted the rising price of LPG 3G in some districts. The demonstration happened because the citizens felt disappointed with Pertamina. Pertamina limits the stocks of LPG 3 KG and make the high price. Pertamina try to calm down the situation with asking the representative of the demonstrator to come in the office and discuss the solutions.
37 3.6 The Solutions for The Problems A big company with a great success usually has so many problems that can influence the company reputation. This is one of Public Relation role to protect the company from the existing issues. A PR Practitioner should be faster solving the problems. On the previous subchapter, there are some problems faced by Pertamina and on this subchapter I write down the solutions from the problems. a. Observing the competitors A company should have a strategy to face the competitors in order to be able attract the customers. Pertamina also has some strategies to face their competitors. The most important thing when a company face the competitors is observing how the competitors are, whether the competitors have an ability or not. After Pertamina understand the characteristic of the competitors, Pertamina should prepare the strategies. In this case, Pertamina try to sell value not price. The Pertamina s strategies to increase the value added are; following up to the customers when they complain, giving a special program to the customers (for example: buy 1 get 1 free or sales promotion), and the last is recruiting skilled-officers to serve the customers.
38 b. Improving the product quality and services Pertamina as a national oil and gas company has so many customers. The customer s credibility is an important factor in building the good image of company. Pertamina in increasing the customer s credibility, Pertamina should improve the product quality and services. Although many corruption issues occur to Indonesia companies, Pertamina still shows their chariness to the citizens. It is shown by holding some charity events in some areas in Indonesia. There were some activities which were held by Pertamina, such as, Pertamina Foundation, Pertamina with 1000 Mangrove, etc. This events aimed to improve Indonesia becomes a country which has a better life both the nature and the citizen. c. Utilizing the Contact Center and Communities gathering Solving customer satisfaction is the same as customer s credibility. Pertamina should give the best products and services. For improving customer satisfaction, Pertamina has a Contact Center Function. The duty of Contact Center is receiving complains, criticism, and suggestion. Contact Center officers obligated to follow up the complains to sales counter in order to be solved as soon as possible. While for the demonstration case, Pertamina always holds communities gathering to find out the best solution with discussing what the matter is.