Publications

The economic development in Asia in recent years has taken place quite rapidly. Goldman Sachs gives a new nickname - growth markets - for the four countries with the highest economic growth rates in the world, Mexico, Indonesia, South Korea and Turkey. Higher economic growth is stimulating more foreign direct investment into these countries. It is important that this fast economic growth must be in balance with social development and environmental sustainability. The Brundtland Report emphasized that sustainability is a three-legged stool of people, planet, and profit. The balance of these three aspects ensures business growth and sustainable development. Generally speaking, current conditions are not balanced caused by low capacity of local governments and local communities in adapting to the rhythm and pace of economic growth. The result is the emergence of the various conflicts that pose the risk of a negative reputation for companies and their negative impacts on social life. This imbalance can actually be addressed together and sustained by building a better understanding of the companies, especially at the strategic level. There are six steps to be taken as follows: 1. To analyze main source of the conflict and its subsequent impacts, 2. To identify the financial, social, and environmental risks of the oil and gas company operations. 3. To analyze the gaps that occur between the capacity of local governments and communities with that of the company, 4. To understand the gap between the capacity of the third-party sustainability standards that exist in the international environment, such as the 5. IFC Performance Standards, UN Global Compact, the Equator Principles, ILO Conventions, ICMM (International Council for Metal and Mining), IPIECA (International Petroleum Industry Environmental Conservation Association) and so on, 6. To better understand the relevant stakeholders who direct and indirect impacts on the issues. 7. To promote the stakeholder engagement and public relation strategy to ensure the sustainability of company operations. These steps are very influential in planning the company's CSR programs that are environmentally friendly and socially responsible, a situation that can create profit to the company and provide benefit to the society. The paper will discuss stakeholder engagement to ensure sustainability in infrastructure development in Oil and Gas Industries.