“OCTG Manufacturer Refines Success.“
Sustainable development in collaboration with Local Community points the way forward.
PT Citra Tubindo Tbk, an Indonesia’ National Company, established in 1983, is a top domestic manufacturer of Oil Country Tubular Goods (OCTG) in Indonesia. The company produces various grades of OCTG, ranging from standard to premium, with high standard of quality and boast strong Local Content (TKDN)
The company’s products are widely used by domestic and international oil and gas contractors operating in Indonesia. Citra Tubindo is entrusted to supply products to several major oil & gas projects in Indonesia, such as, deep sea drilling by Premiere Oil and geothermal project by Geodipa.
Sustainable development through collaboration with local communities is of high importance to Citra Tubindo. The company views Corporate Social Responsibility (CSR) as a strategic means to balance the aspects of financial gains (profit) with the community (people) and environment (planet). For this principle, Citra Tubindo won the Community Initiative Award at the Asia Corporate Excellence & Sustainability Awards (ACES) 2021.
Citra Tubindo leads several CSR programs, including Citra MANDIRI, which focuses on developing economic independence in local fishing communities through training and assistance, and Citra PEDULI, which focusses on enhancing the quality of education in schools around the company. Citra LINGKUNGAN, which is another CSR program run by the company, focusses on efforts to reduce the effects of global warming through planting of 100 trees in Batam’s Botanical Garden. This initiative in particular has been proven to mitigate air pollution and absorb carbon dioxide.
Citra Tubindo is located in the Nongsa district, which has a high number of underprivileged families living far from center of development in Batam. Most of the families rely on fishing activities as a means of livelihood, but due to pollution caused by major industrialization in the area, these families have seen a sharp decline in their income. With limited support from the authorities, the community is unable to adapt to the change brought by the industrialization, resulting in higher crime rates in the area.
Schools were only established in last 5 to 9 years with low subsidy for teachers and equipment. As per records in schools, between 60% to 85% of families in the community have an income averaging USD 8/day, far from the minimum income levels required to survive. Low skills and knowledge amongst the community coupled with the rapid industrialization of the area and limited low skilled jobs demands by companies, has resulted horizontal tension across the community.
PT Citra Tubindo stepped in and established several educational programs to address this situation. These programs include Project VALERIE (Vocational Accelerated Learning and Recruiting Towards Industrial Excellence), which helps students aged 17 to 18 years, at a local Vocational High School (SMKN 6), gain higher competence in engineering subjects and production processes. The skills obtained by the students from Project Valerie are aimed at augmenting their competence in an increasingly competitive labor market.
Project TeFa, or “Teaching Factory”, is another program initiated by Citra Tubindo since 2020. This program aims to give school students aged 14 to 17 years, the opportunity to perform practical activities using company machineries at one dedicated area to guarantee safety. Project Sarah, short for “Skills Ability Readiness though Apprenticeship”, is yet another program run by Citra Tubindo to address the situation in the area. This program gives graduates of the Valerie project, and ex-workers, the opportunity to refresh their skills by participating in upskilling or reskilling activities. It is targeted for individuals aged between 18 to 25 years.
The various initiatives and programs above have left a significant positive impact on the communities involved. Since the programs and initiatives started in 2013, 258 students participated in Project Valerie and 54 participate in Project SARAH, through which 201 of the graduates were recruited. As a result of this, the income of the effected recruits’ families also saw an improvement. Further to this, Citra Tubindo also funded SMKN6, which is part of Project TeFa, to enable the school to purchase learning equipment, tools and facilities. Through the project, SMKN6 went on to become a national role model for successful schools or “SMK”. From an initial intake of 500 students, the project has now seen the number grow to over 1200. These projects by Citra Tubindo not only aim to help the communities involved, but also support the Indonesian national grand design on human development, emphasizing on Vocational Education.
Citra Tubindo’s Multi-Skill Operator (MUSO) program trains blue collars and aims to impart them with the requisite competency and qualifications. Notably, the company’s recruitment, career development and remuneration schemes are based on meritocracy and do not discriminate against any ethnicity, religion, race, or gender. To emphasize this, Citra Tubindo launched the “Women at PT Citra Tubindo” program. Realizing that they operate in a male dominated industry, the company encourages more female employees, providing them with equal opportunities to hold various strategic positions within the company. This has seen a higher representation of female engineers in their Quality Assurance, Metallurgy and Heat Treatment sectors, with women taking on managerial roles in key departments and as Director in their top management.
With the onset of the Covid-19 pandemic, Citra Tubindo’s Profit, People and Planet strategy was instrumental in their adaptation and response to the pandemic, providing them with a higher degree of resilience and business performance. Citra Tubindo can take pride knowing that they are market leaders, even during these trying times, a direct culmination of their Customer focus, Product Quality and Efficient employees.
“Being a male-dominated industry should not negate the inclusivity and equality in the workplace. It is heartening to see this corporation take a stand for inclusivity, and create pathways for women to succeed in this field.”
Shanggari Balakrishnan, Chief Executive Officer, MORS Group