Enhancing Public Policy: Effective Stakeholder Engagement Strategies – A Case Study of International Oil and Gas Company in Indonesia

Abstract

International companies within the oil and gas industry require public policies to operate their business and the sustainability for a long-term operational activity. In this context, the government as the stakeholder holds the role of the policy maker, regulator, and decision maker. Therefore, building and maintaining a strong relationship with the government is crucial, given its influence that may impact the business and public policy. This research highlights the effective stakeholder engagement strategy to enhance public policy, specifically for international oil and gas companies. Aligning with theories of stakeholder engagement, lobbying, along with public policy, this research explores how international oil and gas companies build and maintain relationships with various stakeholders, including the government, to ensure the success of the engagement for public policies as the license to operate. The research used qualitative research through in-depth interview with the public and government affairs of the company and document study as the secondary data from official websites and reports of the international oil and gas companies. The research focuses on understanding the strategy applied by the international oil and gas company through lobbying, focusing on stakeholder engagement and communication with the Indonesian government to enhance public policy. The research also aims to uncover the challenges faced by the company during the lobbying process and to provide brief solutions to these issues. The research analyzes how strategies are applied to ensure successful engagement and build relationships through continuous collaboration, fostering respect and trust with the government to benefited the company’s public policy that would have a positive impact for the company. One case is about the reduced taxes in particular situation, where the trust and respect built with the government had the direct impact in a positive way, ensuring reputations through collaboration in a win-win solution, The research provides insights into how relationship with the government should be built and maintained, especially for international companies within the oil and gas industry. Finally, this emphasizes the importance of effective stakeholder engagement through lobbying as a communication process in achieving the quality of relationships for a successful public policy enhancement with the government.