Creating Shared Value in Upstream Oil and Gas Company and Community: A Case Study of CSR Implementation in PT Pertamina EP Tarakan Field

Abstract

This research examines the practice of Creating Shared Value (CSV) through CSR implementation in upstream oil and gas companies and how it relates to sustainability. In 2020, there was a notable natural decline in energy resources, resulting from the Tarakan Field production performance. This situation presented numerous economic and social challenges, including the responsibility to support the holding company’s commitment to managing energy resilience and contributing to SDGs. The research, which incorporates information from literature analysis, in-depth interviews, and company reports, demonstrates that Tarakan Field’s CSR implementations were a useful strategy for generating shared value for businesses, stakeholders, and communities in alignment with sustainability goals. The research argues for the relationship between CSR implementation and sustainability, as well as the implementation plan and CSV measurement through CSR implementation in Tarakan Field. These concerns are particularly evident in the vague CSV measurement, which rendered it inefficient for the company to fulfill its commitment through unintegrated CSR and operational activities, despite the company’s strategy.