Jakarta, Petrominer — PT Pertamina Hulu Energi (PHE) is one of the backbones of PT Pertamina. Behind the big revenue of PHE, do we know that the present President Director is a former reporter of a news magazine 28 years ago?
How is it possible for a reporter to pursue a career in a state-owned oil & gas enterprise (BUMN)? Even now, he is leading the expanding oil & gas company. But, don’t worry. This former reporter had been pursuing his career for decades from the lowest position to the present level.
Then, what steps is he making for PHE? Following is an exclusive interview with PHE President Director R. Gunung Sardjono Hadi in his office some time ago.
Is it true that initially you were a reporter?
Yes, that’s correct. After I graduated from the Chemical Engineering Department of Diponegoro University, I happened to be working for Tempo Magazine in 1987. But it wasn’t long, only one year. In 1988 I took a test to join Pertamina, and I was accepted.
Although I was a reporter for just one year, it has become an interesting and invaluable experience in life.
Where were you first stationed?
In 1989 I was stationed in Tanjung Field, South Kalimantan, for five years. I was assigned in exploration production as expert field engineer. And then I was stationed as Section Head of the Operational Engineering Expert for another five years. Thereafter, I was placed at the Assessment and Technology (JIANTEK) Division for two years to handle reservoir simulation. The task was given to me for I was sent to Calgary, Canada, to study it. I had been employing this technology on a number of projects.
I was placed at the Exploitation Division as Head of Reservoir production Sub-Surface. From 2002 up to 2005, I was assigned as Planning and Business Development Manager, South Sumatra Area, Pertamina EP. From 2005 up to 2007 as Manager of Planning and Budgeting and eventually as Vice President, Planning and Portfolio of PT Pertamina EP from 2007 up to 2008. Since 2008 I was assigned as SVP Business Development Pertamina Upstream of PT Pertamina.
In PHE, you seemed to have been returned from what you acquired when you were SVP Business and Development of Pertamina Upstream.
Yes, at the time I was installed by Ms. Karen and was assigned to acquire ONWJ that eventually is now under PHE. I also acquired Tuban Block. We also obtained the CBM PSC. Subsequently I was transferred as SVP Planning and Evaluation Upstream PT Pertamina and eventually as President Director of PT Pertamina Gas (Pertagas).
Was your style of approaching employees in Pertagas similar with what you do in PHE now?
After I receive a mandate of a position, the first thing I do is gathering all the teams to compare our vision and mission. Here we all make targets and objectives thereby I received input from all.
In Pertagas, we tried to compare with our competitor, namely PGN. At the time Pertagas gained Rp350 billion profit per year, while PGN gained some Rp4 trillion. It was such a big difference.
Then, with the employees, we made a commitment to make Pertagas a world-class company. For this commitment we need to make a parameter (benchmarking) based on input from consultants. The outcome was five points, namely headcount productivity, operation excellence by using the automation concept so as to reduce human error.
The third was HSE (Health Safety and Environment) connected with ISRS (International Sustainability Rating System). Fourth was people development and the last was organization. From the result of said parameter eventually we approved the target figures including its business orientation. The name of the orientation was CHOPPER abbreviation of Customer satisfaction, HSE concern, Operation excellence, Profit oriented, Personal improvement.
What was the result?
Praise be to God, within three years Pertagas gained Rp1.8 trillion profit. In PHE, I make a similar concept so that we have a milestone. From this, employees are motivated by having a sense of belonging that constitutes the application of TQM (Total Quality Management). TQM consists of continued improvement so that we always make improvement. Apart from that, although the directives from the management are top down, but we also use the bottom up concept for various input. So, we vary it between top down and bottom up.
How do you apply it in 55 PHE subsidiary companies?
From 55 subsidiary companies, most of them are operators. PHE will act as semi-operator holding company and will not play in operation, for operations will be carried out by subsidiary companies. Ahead, we will focus more on portfolio or investment holding combined with operation holding, thus it will be semi-hybrid. For, here we are playing with investment that PHE is not only obtaining blocks the result of acquisition by the parent company.
But PHE can also carry out mapping to see which PHE subsidiary companies that become cash flow, divestment and investment increase. So, it’s nothing wrong if we also divest or share down. This is also to maintain the target from the parent company so as to be achieved.
From the 55 PHE subsidiary companies, there are some in exploration phase. Not all of those in development stages are bringing profit. Aside from that, non operator ones are connected with PI, so our consideration is whether they are to be shared down or full out. This all will be included in the short, medium and long-term assessment. Thus, there will be positive and negative ones thereby we should be selective and efficient in business portfolio. (W18)
