Indonesia Business Unit
In 1998, the Provincial Government of Riau declared that more than 400 villages fell within the category of “underdeveloped.” One of these was Meranti Pandak on the outskirts of the capital city Pekanbaru, near the Siak Bridge, which was constructed by PT Caltex Pacific Indonesia (CPI) in 1978. The village did not have basic facilities. It lacked clean water, pathways, adequate housing, and acceptable environmental controls.
The contrast between the majestic bridge and the slum village of Meranti Pandak inspired CPI’s Community Development (CD) team to take action. A development consultant from Bandung was retained to conduct a survey on what would best address the village’s needs.
As a result, the consultant suggested that an “enterprise park” be constructed beneath the Siak Bridge to serve as an economic zone where villagers could sell food to workers at the rubber factory next to the bridge.
Further surveys revealed that village land/home owners earn their living by renting houses. Improving the condition of the houses would allow owners to improve their income through increased rents.
Once the idea to renovate the houses was accepted, a development committee comprised of village leaders was established to administer and run the project. The first house was turned into a six-room, two-story building, complete with bath and washing facilities and clean water, making use of a water well donated by CPI years before. The owner rented his old house for many times what he had charged before. Realizing what a difference the program made, residents started queuing up to have their houses renovated. A foundation formed by CPI employees provided loans to fund the work
By 2002, after little more than three years, 25 houses had been renovated, each with clean water and electricity. Other developments were carried out, such as building a small mosque and youth recreation facilities. Flood control also was improved; Meranti Pandak has not flooded since.