TRANSNATIONAL OIL AND GAS COMPANY IN DEVELOPING COUNTRY: A CASE STUDY OF PT CALTEX PACIFIC INDONESIA IN RIAU PROVINCE

• Main Author: Hartyadi, Adyana
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/5200
• Institution: Institut Teknologi Bandung

<b>Abstract :</b><p align=\"justify\"> <br /> <br /> This thesis studies how transnational oil company conducts its operation in a developing country and how it interact with the local society and the host government in order to reach its business objectives. Modern business success is judged not only by their financial performance but also by their strategic performance, by how well that company interacts with and serves social, legal, governmental, and broad human interests. During its 50 years of operation in Riau province, Caltex as a subsidiary of Chevron-Texaco, has experienced technology, economy, social, and political changes and has managed to achieved its financial and strategic objectives. <br /> <br /> Basically Caltex has done three activities to carry out their operation in Riau. First, activities taken for the purpose of their core business, second, activities taken to support their core business but can be beneficial to the surrounding community, third, activities taken for the benefit of the community of Riau province and the Indonesian society. All activities conducted by the company have a positive impact for the general public. Although since 1998 the Indonesian political system has undergone a <br /> shift towards more democratic governance, the changes in regulations concerning redistribution of income generated from the natural resources have not been able to satisfy the wishes of local authorities and the community at large in the Province of Riau. <br /> <br /> In view of the above observation, we reconunend further study directed to specify a better terms and conditions concerning the distribution of generated income from the exploitation of oil and gas resources between the central and local governments, thereby all parties concerned could fell a fair share of the benefits. <br /> <br />