Abstract :

Oil & gas business is still attractive for investors. Today, they look carefully at company’s financial indicators (ROA, ROI, Profitability) and new indicator called “ESG” in making investment decision(Pedersen et al., 2021). PT.X, a developing national energy company with vision becoming world class, currently still rely on fossil energy as the backbone of its business. To finance its operations, PT.X opens up opportunities for investors to invest. To attract investors, PT.X is pursuing better ESG rating each year. In 2023 ESG score of PT. X is 20.7, 1^st rank out of 61 O&G companies in the world (Morningstar Sustainalytics version). In competitive energy business post Covid-19 pandemic PT. X aware that they must improve its ESG score continuously. Several strategic goals have been set, one of it is Total Recordable Injury Rate / TRIR, a ratio of number of recordable incidents per total working hours in a year. Target is more challenging each year. TRIR 2024 was set 0.19. This number is much lower than the average TRIR achieved by IOGP members in 2020 that is 0.7. PT. X’s TRIR goal applies to all of its subsidiaries including PT. X-Y located in biggest O&G block East Kalimantan Indonesia. PT. X-Y operates big mature field ultimate with ultimate challenge to maintain oil and gas production from wells that decline naturally. PT. X-Y have planned massive work programs i.e: drilling ± 100 wells/year, ± 4000 wells intervention, and also several offshore platforms construction & installation projects. These activities involve many workers and very high risks. Workers’ safety culture is very important to support the achievement of this goal. Unfortunately, the results of surveys conducted several times by one of reputable university in Indonesia, PT. X-Y safety culture level has decreased from the Proactive to Calculative. To improve PT. X-Y should start by solving organization’s safety cultures’ issues. Also, with limited resources the company’s safety team believed they should focus on improving existing safety program called “TEMAN” rather than introducing new ones. OKR framework is used to manage these difficult objectives because it has superior principles and similarity with PT.X core value AKHLAK, i.e: align and connect team work, focus and commit to priorities, track for accountability. OKR method is successful helping big companies such as Intel, Google, IBM to achieve their stretch goals with minimal side effects / no side effects at all.

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Keywords :

ESG, OKR, safety culture, stretch goal, TEMAN program, TRIR

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