Mobil in Aceh, Indonesia (A) & (B)

Academic Case Study by:
Henri-Claude de Bettignies, Liana Downey
Published: 2002

In December 1998, Ron Wilson, chief executive of Mobil Oil Indonesia (MOI), considered how he should respond to allegations made by a group of non-governmental organizations (NGOs) that Mobil had been complicit in serious human rights abuses in Aceh, Indonesia.

MOI, established in 1968, was a joint venture between Mobil and the Indonesian oil company, Pertamina. Based in Lhokseumawe, MOI was responsible for setting and managing the terms of the various contracts with Pertamina and the Indonesian government, and for establishing and managing the exploration and exploitation operations.

Even at the beginning, 30 years ago, no one had ever thought managing the Indonesian operations would be easy. As a location, Aceh was far from convenient. But could any of the team at Mobil have imagined just how challenging managing operations in Aceh would be?

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Case No: IB40A,B