In today’s global economy, a growing number of companies are implementing health, safety and environmental policies and programmes in order to maintain their competitive advantage. One such company is Pertamina, which has engaged DNV GL to assist in implementing the International Safety Rating System. 

“I’m a firm believer in ‘what gets measured gets done’ and I see how HSSE relates to the economic realities of production.” Djoko Susanto, Corporate Head and Vice President of Pertamina’s Health, Safety, Security, and Environment (HSSE) activities

Since its foundation in 1957, the company has navigated a path of steady growth in terms of oil and gas production and exports in an increasingly competitive global economy. In developing its natural resources to meet the demands of industry, Pertamina has fostered policies aimed at achieving world-class performance in health, safety, security, and environmental (HSSE) matters.

Djoko Susanto, Corporate Head and Vice President of Pertamina’s HSSE activities, comments: “Pertamina constantly strives to develop its operational performance. Our aim is to be a world-class energy company and our performance should reflect our goals.”

Pertamina’s core activities include oil, gas, and geothermal exploration and production, both onshore and offshore. It aims to achieve the best in HSSE standards while guaranteeing production targets and good investment returns.

Explains Susanto, “We started looking at HSSE many years ago. We developed our own management systems that suited our needs. However, the company has grown significantly over the years, with more activities and employees (currently over 21,400) and with that comes added risk. We needed a proven system to measure our performance so we opted for DNV GL’s International Safety Rating System (ISRS). The audits keep you focused and include a high degree of planning. This helps us identify and rank our risks.”

He continues, “Also, I’m a firm believer in ‘what gets measured gets done’ and I see how HSSE relates to the economic realities of production. While we have had a good record of safe manhours over the years, we have also experienced a few incidents that led us to reassess our management systems and procedures. Attaining an ISRS level is now a required KPI (Key Performance Indicator) for all Pertamina divisions, and this has been formalized by the Pertamina Board of Directors.”

Eric Roos, DNV GL Principal Consultant, points out that the ISRS is a system to assess, improve, and demonstrate the health of an organization’s business processes and applauds Pertamina for its work in HSSE matters.

“Pertamina started its ISRS journey back in 2007 when they were one of the first companies to adapt ISRS 7th Edition in Asia. Since then, they have moved through the levels getting more and more benefits from the system. Indeed, Pertamina’s management is very pro- ISRS and uses it to measure the performance of their management system and to demonstrate their HSSE performance to their external stakeholders. They see it as a top-down process, while also acknowledging the need to give a greater degree of ownership in the system to employees at all levels, strengthening positive attitudes and behaviour. Another key characteristic is their commitment to perform significantly better than anyone else in their industry, and this is reflected now in the Pertamina corporate requirement that ISRS should be a KPI. We have been impressed with their performance and Pak Djoko’s drive and leadership to implement the ISRS at all its divisions in a planned and structured way,” says Roos.

Adds Susanto, “As a responsible company, we want to find out how we can meet the expectations and requirements of our stakeholders, the industry, and the public. Continual improvement is the main premise of ISRS. Also, with a good management system in place, potential incidents or accidents can be avoided.” Susanto emphasizes that a management system is no longer “something extra” that companies need to do for the sake of moral or corporate responsibility. It should be part of every company’s business strategy in order to help achieve competitive advantage, and with ISRS levels and “Statements of Performance”, the organization can demonstrate the suitability, adequacy, and effectiveness of the management system to the larger world.

“At Pertamina we regard customer care, technology and innovation, trustworthiness, and HSSE as inseparable factors that not only drive the business beyond the competition, but also give the company a higher ranking in the global energy sector.

“Indeed, our human capital is one of the most essential elements in our activities. They are the source and energy that enables the company to maintain the expected high quality standards in our activities,” says Susanto and concludes, “and that is why it is vitally important that we apply the best industry practice when it comes to HSSE. It’s an investment that we need to make to meet the growing energy demands in Asia and to become a world-class energy company.” 

Date: 1 June 2015
Author: Stuart Brewer
Photo: Ferry Sonnevil/Pertamina
Source: DNV Forum no. 1, 2015