Publications

Human Resources have become more crucial to business success, especially with the rapid social, technological, economic, political and demographic changes that have reshaped the environment in which oil and gas companies operate. One change which is obvious is the lower oil prices that have caused companies to shift their focus more on cost and operational efficiencies. In relation to that, the Government of Indonesia is also putting more concern on managing cost recovery which is now being seen as potentially causing financial losses to the state. Some local newspapers have published that the GOI plans to implement the new gross split mechanism which will remove the cost recovery mechanism. These changes bring challenges to Human Resources to rethink their organization operating models since employees’ knowledge, skills, motivation, behavior and the movement of people and knowledge through the organization, as well as the dynamic process of organizational renewal are influenced by HR practices. Moreover, it is also important to have balanced HR programs that provides the right values for employees while not wasting money. Cash is not always going to be available, especially in the current oil price uncertainty which cause organizations to rationalize and be prudent in managing their operational costs. Therefore, HR must try something else besides monetarily aspect, such as a more meaningful work environment which can create values that are not only for those inside the organization but also for others outside the organization. This paper provides a new perspective on how an HR program can also add significant values not only to improve the quality of life of the workforce and their families but also societies at large. Several insights that are included in the paper are: overview of Indonesia oil and gas HR practices, integrating HR practices and corporate social responsibility to produce the best result for government, societies, shareholders and employees. Keywords: Human Resource, Corporate Social Responsibility, Collaborative Working