Indonesia is important energy source in the region, which is the world largest LNG exporter and holds proven oil reserves around 5 billion barrels. A new oil and gas law promotes environment more conducive and it is expected to attract foreign investors come to Indonesia. PetroChina International (PCI) as subsidiary of one of the largest Oil and Gas Company from China, PetroChina Company Limited, entered Indonesia in 2002 by acquiring Devon Energy. Its operation is under Production Sharing Contract (PSC) agreement with BP Micas focusing on oil and gas upstream operation. PCI has six PSC join venture operations located at Papua, Central Sumatra, and East Java with total production rate 45,000 bbl/day.

In doing business in Indonesia, PCI should have strategy, which is suitable with the current condition and able to achieve the company's mission. Group E from IPMI Business School -Class Executive January 2002 has tried to assess and develop Balances Scorecard framework for company level and one Department Level. Finance Department is chosen as a pilot project before rolling out to the entire organization. Based on the assessment done by interview and survey, the group proposed company's vision, mission, and strategy as a basis to develop Balanced Scorecard. The group also sums up the customer value proposition describing how PCI will differentiate its self to customers and what particular set of values that PCI will deliver.

The Balanced Scorecard framework developed by the group is basically the translations of the organization's strategy into Objectives, Key Success Factor, Key Performance Indicator, and Initiatives in each perspective, e.g. Financial, Customer, Internal Business Process, and Employee Learning and Growth. Employee productivity and satisfaction are foundation for the others perspectives in achieving operational excellent of Internal Business Process, then corporate governance and customer intimacy in Customer perspective. And at the end is to achieve productivity and profitability, which are part of financial strategy.

The Balanced Scorecard can be implemented effectively if the PCI has communication program to build awareness of company's vision, mission, and strategy, educate the key Balanced Scorecard concepts, generate engagement and commitment, and encourage participation in the process. In addition, PCI should cascade down the Balanced Scorecard to all organization level, puts it as individual's scorecard and performance reward, then monitor continuously and adjusted accordingly.



Research Location: PT. PetroChina International Company