Indika Energy: Giving it back

Energy company PT Indika Energy Tbk. has demonstrated that commitment to professional excellence and responsible stewardship in all its endeavours is key not only to good business but to  corporate citizenship on a local, national, and global level. 

Indika Energy was incorporated in 2000, listed as a public company on the Indonesian Stock Exchange in 2008 and has grown into Indonesia’s leading integrated energy company. Its energy sector roots span back to 1972, planted firmly in its commitment to providing customers with total energy solutions in energy resources, energy services and energy infrastructure; while accommodating stakeholders’ interests in protection of the environment and community empowerment schemes across Indonesia. 

This multi-faceted commitment drives the company’s vision of being a sustainable corporation and ensuring effective business development in coal production, engineering, procurement and construction services, mining contracting, coal transport, logistics services and even power generation projects.

A case in point is its strategic acquisition of PT Petrosea Tbk., a multi-disciplinary engineering, construction, and contract mining company in 2009. This not only strengthened Indika Energy’s leadership in mining services, but buttressed its capacity to deliver total energy services. From acquiring mining rights and feasibility studies through to mining operations, processing, production, barging, transshipment and eventual off-take.

The company’s management is convinced that no firm can sustain coherent operations in the long-term without effective corporate governance that ensures a consistent operational performance. This adds value not only for  customers, but  to stakeholders in its operational areas. 

Ultimately, good corporate governance becomes a part of a much larger picture that differentiates the performance levels of companies in their respective industries. For that reason, Indika Energy consistently strives to surpass existing standards not only in the energy sector, but in the realm of environmental concerns and corporate social responsibility (CSR). Commitment is what makes the difference; it’s as simple as that.

Award winning
The corporate commitment to a careful stewardship of its assets and operations has led to the company being bestowed with a number of local, regional and international awards. In 2010, it was awarded the ‘Best Managed Company Award’ as ‘Best mid-cap Company for Indonesia’ by Asiamoney magazine, which also awarded Indika Energy’s president director and co-chief executive officer, Arsjad Rasjid the prestigious ‘Asia’s Best Executive Award 2010’. 

In 2011, the company drew international recognition when the World Economy Forum (WEF) listed it as the role model among ‘Global Growth Companies 2011’ for its distinctive integrated energy strategy and business model. Furthermore, Euromoney magazine listed Indika Energy among the ‘Best Managed Companies in Asia’ on three categories: ‘the most convincing and coherent strategy in the metal and mining sector in Asia’, the most convincing and coherent strategy in Indonesia’ and the ‘Best Corporate Governance’ award.

In the same year, the company, led by Arsjad Rasjid and his co-CEO Wishnu Wardhana, was cited for more than its corporate acumen in the energy sector. It was honoured for ‘Best Community Programmes’ (Bronze) and ‘Best Workplace Practices’ (Gold) in Cebu, the Philippines, at the third annual ‘Global Corporate Social Responsibility Summit’, Asia’s most prestigious CSR awards program.

Most recently, Indika Energy has been nominated as: ‘Best Indonesian Corporate Citizen 2012’ by The New Economy, underlining its conviction that growth and synergy should extend beyond company profits and incorporate a strategy that returns part of the benefits it receives to the society it operates in. 

“Good corporate governance is to create a balance between economic and social goals and between individual and communal objectives. It is done so, while encouraging efficient use of resources, accountability in the use of power and stewardship, as well as aligning the interests of individuals, corporations and society at the utmost,” says Arsjad.

Indika Energy undertakes its social stewardship at both the local and national levels extremely seriously. At the local level, individual business units conduct ‘community development’ programmes with the objective of engaging and assisting the communities in which the group companies operate. Nationally, though its headquarters are located in Jakarta, the company implements programmes in operational areas targeting a wider impact on Indonesian society.

Inspiring Indonesia
One of these programmes, the ‘Teach for Indonesia Movement’ (Gerakan Indonesia Mengajar, (GIM)) was initiated in 2010 through collaboration with the national education figure Anies Baswedan. GIM immediately mobilised 120 of the best newly graduated scholars from top universities in Indonesia to teach in elementary schools across 117 villages in isolated regions scattered throughout Indonesia from Aceh to west Papua where quality educational facilities and educators are lacking. GIM’s goal is to improve the lives of people living in poverty pockets throughout the nation by empowering them through better education.

“In just the first two annual rounds of the GIM program, we have had a positive impact on the lives of more than 18,000 school children, and we are still going strong with the third round’s ‘young teachers’ getting into the programme to replace those who have finished their tenure,” Anies explains passionately.

Most recently, in June 2011, two elementary school students under the tutelage of GIM’s young teachers in the Bengkalis Regency, Riau, Sumatra, and Majene Regency in Sulawesi emerged as finalists in the national-scale ‘Kuark Science Olympiad 2011’ involving 82,000 students from throughout Indonesia.

“This is concrete proof of GIM’s contribution to facilitating equitable access to education and to opening up brighter futures for the students at schools under our guidance. As our motto says, ‘A year of teaching, a lifetime of inspiration’,” Arsjad says. “This model has proven effective, and now we hope to expand the scale of impact that we deliver by inviting other businesses to join us as sponsorship partners,” he added.

Indika Energy is convinced that with its own strong commitment, along with cooperation from other private, nonprofit or governmental sector entities, it will be possible to build a nationwide community development network on the back of its current initiatives to empower communities and eradicate poverty. The company believes that it certainly has the obligation to at least try.

“We are a corporation with a strong commitment to stewardship not only within our business sector, but beyond into the community and the natural environment in which we all exist together. We remain committed to contributing to human welfare as a good corporate citizen well into the future,” concludes Arsjad.