7 Mei 2014 MB4043 Dhyna Analyes Trirahayu

Corporate Social Responsibility 13010108

South Sumatera is one of ConocoPhillips operation area which majority of local people work as
rubber farmers. Because the oil drilling and refinery location is set in different area, they
connected by pipe pass through local residences and rubber plantations. Many holes in their pipe
found which used by local people to take oil for their daily needs. This incident not only
disadvantages ConocoPhillips itself but also the local people that died when take the oil. So what
should ConocoPhillips do to solve this problem?

Conocophillips have to understand why the people steal they oil. After they find the cause, they
need to find how to solve the cause. I think the cause is the prosperity of the local people. They
work as rubber farmer which income not much to fulfill their need. Their income is from sellling
the rubber and the price of the rubber is low.

The rubber is sold in form of raw rubber which still contain water that makes it price is low
compare that processed rubber. Moreover, in form of raw rubber the transportation is hard and
the durability is short. So if they failed to sold the raw rubber and it is already damage it can not
be sold. This damage rubber become waste that will damage the environment.

The durability of raw rubber can be upgraded by processed it to became powder. In form of
powder the water content is low, so the durability will be longer. Moreover, the transportation
become easier. So, I think ConocoPhillips can conduct a community development by build a
rubber processing plant to improve the prosperity of the local community. By build this plant
ConocoPhillips not only will be help the local community but also the environment, because the
waste from damage raw rubber can be reduced.

On the other hand, this case also damage the environment. The oil leak contaminate the soil and
decreased it fertiity. So after solve the issues with the local community, ConocoPhillips have
responsibility to repair the soil so it can be use again. In order to achive this ConocoPhillips also
have to educate the people that oil leak can contaminate the soil and make their plantation
damage. So, I think by educate the people about the impact of oil leak to soil the people maybe
will concern and not steal the oil again. So, after the soil repair, it will not contaminate again.

So can be concluded that to overcome this problem ConocoPhillips have to understand why the
local people steal their oil and eliminate the cause by increase the local community prosperity, by
conduct a community development. Such as what discuss above, to build rubber processing
7 Mei 2014 MB4043 Dhyna Analyes Trirahayu
Corporate Social Responsibility 13010108

plant. For environment aspect ConocoPhillips have to educate the local community about the
impact of oil leak to environment.

References:

1. Strengthening Indonesia’s Competitiveness: Business’ Investments in Sustainability, CSR, and

Inclusive Growth.
2. ConocoPhillips 2012 Sustainable Development Report