Authors:
Budi Ibrahim
1
;
2
;
Tony Robey
2
and
Haris Wahyudi
3
Affiliations:
1
Advisor Development & Technology, Pertamina UTC, Indonesia
;
2
Independent Researcher, Indonesia
;
3
Mechanical Engineering Department, Faculty of Engineering, Universitas Mercu Buana, Jakarta, Indonesia
Keyword(s):
Value Chain Map, Corruption Risk, Business Risk, Oil, And Gas Upstream Industry
Abstract:
Risk management is perceived as an indivisible part of good management and governance. Identifying risk and communicating that information is important to all risk management frameworks but at present traditional frameworks use the perception-based and traditional heat map approach. A corruption risk map of upstream oil and gas industry integrated with a business risk map, designed on Value Chain Map (VCM) and Value Chain Analysis (VCA) principals, and combined with a non-geographical map, spatial analysis, and evidence-based material, are considered an innovation forming part of deliverables from the research entitled Research on Corruption Risk in Indonesian Upstream Oil & Gas Industry - Mitigation Policy Analysis - Evidence-Based Approach that is granted by ACE (Anti-Corruption Evidence Research Consortium) led by SOAS University of London and funded by the Department for International Development (DFID) from the UK Government. The corruption risk mapping that has been developed
is expected to map corruption risks in line, and integrated with shareholder value, easily communicated and visually apprehensible. The proposed VCM could be collectively used not only as a risk map by stakeholders but also as a multi-dimensional database to store and analyze evidence-based data/information, enabling the collaboration and synergy in risk mitigation. To further ensure the potential use of this VCM-based risk map, both by the upstream oil and gas industry and by law enforcement, the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), the Corruption Eradication Commission (KPK) and the Financial Transaction Reports and Analysis Center (PPATK), as related stakeholders, collaborated and supported the development. We conclude that the proposed VCM can serve as an application and utility of the value chain architecture for cost advantage purposes.
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