press release PT.CPI partnership with Indonesia creates jobs, benefits communities and generates government revenues

Jakarta, Indonesia, July 19, 2018 – PT Chevron Pacific Indonesia’s (PT CPI) 94-year partnership with Indonesia has created local, high-quality jobs that raise income levels, delivered social investments to benefit local communities and generated close to $200 billion in government revenues.

Key economic highlights of the partnership include:

• Today, 98.7 percent of PT CPI employees are Indonesian, up from about 97 percent in 2016.
• $736 million added to real incomes in Indonesia by Chevron and our partners (2013).
• $11.9 billion added to Indonesia’s GDP by Chevron and our partners (2013).
• One Chevron job supported an average of 36 other jobs in Indonesia (2009-2013).

“We live in a very connected world where we’re dependent on each other to prosper. We believe that our business succeeds best when the people we work with and the communities in which we operate succeed too,” said Chevron IndoAsia Business Unit Deputy Managing Director and President Director PT CPI Albert Simanjuntak.

Chevron’s community partnerships and investments help improve opportunities for families and small businesses in Indonesia. Our Local Business Development program in Riau, East Kalimantan and West Java led to more than 7,800 contracts to local Indonesian companies, created nearly 52,000 jobs, and procured more than $120 million (1.2 trillion rupiah) in goods and services from local partners. We also established vocational training to help young people learn new skills. Nearly 400 participants have benefited since 2011.

Chevron also promotes sustainable integrated farming, small and micro enterprise development and microfinance access for communities surrounding PT CPI’s operations in Riau province. Since 2015, the program has provided capacity-building training to more than 1,570 farmers and micro and small business owners and successfully helped improve their income. We also helped establish small- and medium-enterprise centers that serve both as business consulting centers and as trading houses that carry more than 200 products.

With a focus on sustainability, PT CPI supports teachers, especially those educating students in science, technology, engineering and math, to cultivate job opportunities for the next generation of workers. Our investment in education and training has helped communities thrive. Education has been PT CPI’s focus since 1957, when it established the first state senior high school, SMAN 1, in Pekanbaru, Riau.

PT CPI, in partnership with the Riau provincial government, established the Politeknik Caltex Riau (PCR) in 2001. PCR is the province’s first polytechnic university. Its curriculum was developed to contribute to the local economic growth. As of 2017, more than 3,300 students have graduated from PCR. About 85 percent of the students found jobs within three months of graduation.

PT CPI also helped establish Politeknik Aceh in 2008, as part of the Chevron Aceh Recovery Initiative (CARI), in response to an earthquake and tsunami that destroyed the region in late 2004. The polytechnic offers degrees in mechatronics, information technology, industrial electronics, and accounting.

We also established Darmasiswa Chevron Riau (DCR), a scholarship program that helps local talented students access higher education. Since 2001, the program has helped more than 1,000 students.

Rita Kusrina, who today works as an analyst at PT CPI, received a scholarship to Polyteknik Caltex Riau in 2002. “Because of this scholarship, I could fund my education without burdening my parents, learn skills to enter the workforce and be independent in life,” she said.

Chevron promotes healthy communities and improves access to health care. Through the Desa Siaga (Alert Village) initiative, we work with local governments and organizations to help midwives and volunteers in 10 villages in Riau and East Kalimantan to prepare women for childbirth and newborn complications. In 2015, we provided medical equipment and supplies to 15 health care centers. By the end of 2016, in monthly basis more than 2,500 women and children benefited from this program. In Rumbai Pesisir, a district along the Siak River, near Pekanbaru, in Riau province, we worked with local organizations to build potable water wells. “Previously, it was very challenging for some of the communities to get access to clean water,” said Yuliarso, the head of the Rumbai Pesisir sub-district, which manages eight villages in the region. “Not only do they have access to clean water, but also a better quality of living.”

Chevron is one of the world's leading integrated energy companies and through its Indonesian subsidiaries, has been present in Indonesia for 94 years. With the ingenuity and commitment of highly skilled and dedicated employees, Chevron Indonesia leads as one of Indonesia's largest producers of crude oil. From our onshore oil fields in Riau, Sumatra and our offshore fields in East Kalimantan, we have produced more than 13 billion barrels of oil to meet the energy needs of Indonesia's growing economy. In operating the oil and gas blocks in Indonesia, Chevron is working under supervision of SKK Migas based on Production Sharing Contract term. For further information about Chevron in Indonesia, visit www.indonesia.chevron.com.

Download pdf - the case study

Contact: Danya Dewanti | Email:danya.dewanti@chevron.com | Phone:+62811894229

NOTICE
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 22 of Chevron’s 2016 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements.