Mobil in Aceh Case Study Essay

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Mobil in Aceh

In the 1970s, stakeholders included Pertamina and the Indonesian government, Mobil and its employees and their families, the people of Aceh, the NGOs and activists active in Aceh. Many of these stakeholders remained through the 1980s and 1990s. The activists and pro-independence factions remained, the Indonesian government and military was more active in response. The local Acehnese were still among the major external stakeholders. The balance of who was more important may have shifted somewhat, mainly because the locals began to feel that the profits of Mobil's operations in Aceh were not being distributed properly.

The five claims are of varying degrees when it comes to how realistic they are. Mobil knows this. Using a road that the company built a long time ago means nothing, but using Mobil's equipment and facilities is very meaningful. Mobil's relationship with the Indonesian government needs to change as the result of these incidents. The company's ties are so close that Mobil does not even publicly stand up for its own employees, which is a critical issue. Mobil needs to assert its power in Aceh, knowing that its expertise is required by the Indonesian government to extract the oil that exists in the region. Thus, Mobil should be stronger with the Indonesian government, using its economic power to reshape the way that the government deals with the situation in Aceh.

B. The international media has good cause to be critical of Mobil. But Mobil needs to be more transparent with respect to the situation in Aceh. This will at the very least get Mobil's perspective into the stories, but more importantly it will force Mobil's managers to be more accountable themselves, knowing that there will be public disclosure of activities.

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C. The NGOs make a lot of valid points, and they are holding Mobil accountable. They are not asking too much of Mobil to avoid contributing to state-sponsored terror and torture. Mobil should at this point align itself with the NGOs more. This will allow for Mobil to be more transparent about its activities, to become more aware of the situation on the ground, and to have more control over the messages that are being sent to the world about Mobil's activities.

Part II, Q3. It appears that ExxonMobil's strategic priorities in Aceh are unbalanced. The company seems strictly oriented towards profit, to the point where it sees the Acehnese and their proponents as a nuisance and throwing far too much tacit support behind the Indonesian government. The problem is that this strategy was short-sighted. There were many issues in the late 1990s and beyond that could have been prevented had the company paid more attention to other stakeholders besides the shareholders. Production began to decline and there were shutdowns for several months. Mobil managers were facing kidnappings and life for the families became difficult, and that could have been prevented -- Mobil did not even respect the interests of its own people in Aceh, trading their security….....

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