"The international recruitment and the employment of expatriates in host country and inpatriates in home country or outside the host country is one of the consequences of the open market policy of many countries. Buhler indicates that the international recruitment is perceived more because of the risk of an organization to compete globally that requires managers and leaders who have international experiences (Buhler 2002:100).
With more countries opening themselves for foreign direct investment (FDI) there are more potential of employment of expatriates and inpatriates to provide among others the transfer of skills and technology (http:/lwww.unctad_org/templateslstartpage.asQ?intltem 17.00 hours, 26 June 2005). The transfer of skills and technology is very much a true important for an overseas oil and gas operation especially if the host country has no research and development facilities and thus is very much depending on the home country capabilities.
Although Indonesia opens its door for foreign investors however the government has put some limitation to the employment of expatriates as part of their policies in safe guarding the employment of the local people. Foreign investors on the other hands, have three 3 major motives of employment of expatriates i.e. Staffing, due to skill and knowledge deficiencies, Management Development and Organizational Development (Harzing and Ruysseveldt 1995: 181-182).
The purpose of this study is to analyze what factors, actors, objectives and alternative strategies of employment of expatriates and inpatriates at CNOOC (China National Offshore Oil Corporation) SES Ltd. CNOOC SES Ltd is one of the CNOOC Ltd subsidiaries operating an oil and gas concession in Indonesia. The employment of expatriates and inpatriates consist of employment of personnel from Parent/Home Country (PCN), Third Country National (TCN) and Host Country National (HCN). For the purpose of the study, Analytical Hierarchy Process (AHP) is used as the tool to analyze experts? judgments. The experts were chose from the Head Quarter in Beijing (2 experts), 3 experts from CNOOC SES Ltd, indonesia and 3 experts from the Government of Indonesia, in this case from BPMIGAS.
One of the results from the study shows that staffing is the major objective in having expatriates working at the host country, with cost eftlciency as the prime factor for the employment of those expatriates while the Government of Indonesia, in this case BPMIGAS is the major actor in the decision making. lt is also noted that the Host Country National (HCN) would be the prime alternative of the employment of expatriates, if their competency matches with the competency possesses by the expatriate. The study also shows that the selection of inpatriates (personnel from host country working at head quarter or other countries than his/her own country) would be from personnel who are being employed by the company at the time of selection and is based on his/her competency while CNOOC SES Ltd as the primary decision maker with the objective to enhance the host country national competency (management development)."
