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

10th

, 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 8th

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.

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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

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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.

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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.

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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

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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

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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.

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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.

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3.1.7 Structure of Organization

Image 2: Structure Organzation

President Director & CEO

Dwi Soedjipto

Corporate Secretary

Petrochemical Project

Coordinator

Chief Audit Executive

Chief Legal Counsel

and Compliance

Director Marketing and Retail

Ahmad

Bambang

Director Human

Resources

Dwi Wahyu

Daryoto

Director EBT (NRE)

Yanni

Handayan

i

Director Finance

Arief

Budiman

Director Refining

Rachmad

Hardadi

Director Upstream

Syamsu

Alam

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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

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3.2.3 Corporate Secretary Organizational Structure

Image 4: Corporate Secretary Organizational Structure

Corporate Secretary

Nursatyo Argo

Manager Data & Informasi

Ernayetty

Secretary

Rudang Mayang

Corporate

Comm.

Investor

Relation

Compliance CSR BOD

Support

BOC

Support

Internal

Comm.

External

Comm.

Media

Relations

Brand

Capital Market

Corporate Action

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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 2nd

till June 2nd

, 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 1st 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.

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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

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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.

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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.

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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.

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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, 3rd

, 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.

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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.

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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.