In 2014, Chevron in cooperation with the University of Indonesia’s Faculty of Economics through its Lembaga Penyelidikan Ekonomi dan Masyarakat/LPEM and one of the world’s leading economic forecasting firms IHS to quantify how Chevron’s operations contribute to the Indonesian economy.
The study provides credible and fact-based proof points of the economic impact of Chevron existence which represent employees commitment and contribution to the long-term growth and prosperity of Indonesia.
The study find the following Chevron’s impact for Indonesia:
- Chevron’s operations generated government revenues for Indonesia approximately Rp455 trillion in 5 years for 2009 to 2013, including its partners, which is more than enough to construct the trans Sumatra highway from Aceh to Lampung, which is 2,700km.
- The average annual government revenue for Indonesia from Chevron’s operations of approximately Rp 91 trillion was equivalent to 7.7% of the State Budget, including direct suppliers and the extended supply chain – this is enough to build 41,000 health clinics.
- Chevron’s Indonesian operations contributed more than Rp120 trillion to the nation’s Gross Domestic Product in 2013, accounting for 1.4% of Indonesia’s GDP – this is equivalent to the construction of 46,000 primary schools.
- Chevron’s operations generated Rp7.7 trillion of personal income for working people in Indonesia including employees of Chevron and its partners in 2013. This is enough to pay for the secondary tuition fee for 1.8 million students.
- The company’s operations supported more than 260,000 direct, indirect and induced jobs across a broad range of industries in 2013 – enough to provide employment opportunities for the working age population of Yogyakarta city.
- Every Chevron job supported an average of 36 other jobs in Indonesia from 2009 to 2013.
- Every Rp 10 trillion of Chevron direct local spend in 2013 drove another Rp 7.2 trillion in additional output for contractors and suppliers.
The study also provides case studies on the impact of Chevron’s social investment programs to the communities where Chevron operate that focus on education and economic development.
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