Responsible Corporate Leadership: Oil and Gas Exploration

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Responsible Corporate Leadership

In 2006, there was the biggest mud volcano on Indonesia which was affected by the gas well drilled by PT Lapindo Brantas. According to Lapindo Brantas, Inc., the company focuses on oil and gas exploration and production in Indonesia, operating under a Production Sharing Contract with the Government of Indonesia in an area known as the Brantas Block in East Java.

In accordance with Hastuti, H. (n.d.), the mud flow caused sixteen villages and three sub-districts that included factories and rice fields which make these have been closed. It is also be the reason that make thousands people lost their jobs and houses plus, the transportation routes were distracted which caused the traffic jams. Therefore, numbers of refugees, unemployed, abandoned children, prostitution and education stuck are risen up.

As said by Lapindo Brantas, Inc, “Lapindo Brantas lives and thrives together with the community in its operation areas. Through building mutually beneficial relationships with the community, Lapindo Brantas hopes to provide communities with a better quality of life”. Personally, it is quite conflicting from what the company has stated because it still has hundreds of people who suffered from the Lapindo Mudflow in East Java. Even though, it has been almost seven years but these people have not received compensation from this disaster. Moreover, Lapindo claimed that it was not the company’s fault, they blamed on an earthquake in Yogyakarta where is far away from hundreds kilometers. One victim said she no longer believed that the company and the government would keep their promises since 2011. However, Lapindo paid Rp 3 trillion (US$ 306 million) to victims in early 2013. (Harsaputra, I., 2013)

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...w.env.go.jp/earth/coop/eco-csrjapan/en/indonesia.html

Lapindo Brantas, Inc. (n.d.). Profile. Retrieved from http://lapindo-bhttp://lapindo-brantas.co.id/about/profile/rantas.co.id/about/profile/

Lapindo Brantas, Inc. (n.d.). Health&safety&environment. Retrieved from http://lapindo-brantas.co.id/responsibilities/health-safety-environment/

Harsaputra, I. (2013, May 30). Lapindo mudflow victims still waiting for payment . Retrieved from http://www.thejakartapost.com/news/2013/05/30/lapindo-mudflow-victims-still-waiting-payment.html

Kursh, S., Lant, T., Majeske, K., Olver, J., & Plant, R. (2012). OL690 Responsible Corporate Leadership. : Pearson Custom Library.

UNITED NATIONS. (2006, July). Environmental assessment hot mud flow east java, indonesia . Retrieved from https://docs.unocha.org/sites/dms/Documents/Indonesia_Hot_Mud_Flow_East_Java_final_report.pdf

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