Govt approves Pertamina's restructuring plan<\/p>\n
JAKARTA (JP): The government approved plans by state oil and
\ngas company Pertamina to replace its current board of directors
\nand cut the company's workforce by 30 percent, Pertamina said on
\nMonday.<\/p>\n
Pertamina president Baihaki Hakim said that the government
\nissued presidential decree No169\/2000 on the restructuring of
\nPertamina's organization last week.<\/p>\n
\"The restructuring is actually a process of streamlining our
\nactivities. Because of this streamlining and decentralization,
\nthe consequence is that several structural functions will have to
\nbe relinquished\" Baihaki told reporters during Pertamina's 43th
\nanniversary celebration.<\/p>\n
He said last week that Pertamina's employees would be reduced
\nto an \"ideal\" number of 18,000 from the present 26,000 in a
\nretrenchment program that would be carried out over five years.<\/p>\n
Pertamina's new board of directors will comprise six directors
\nas compared to the present seven directors, Baihaki said.<\/p>\n
The current board of directors comprises an exploration and
\nproduction director, a processing director, a finance director, a
\nlogistics and domestic distribution director, a shipping and
\ncommunications director, a director of general affairs and the
\npresident director.<\/p>\n
He explained that the new board would consist of a president
\ndirector, an upstream director, a downstream director, a finance
\ndirector, a development director and a production sharing
\nmanagement director.<\/p>\n
The downstream directorate, he said, would integrate
\nPertamina's processing activities, its trade and marketing
\naffairs and shipping activities under one director.<\/p>\n
\"The streamlining process is especially reflected in the
\nfunction of the downstream director,\" he explained.<\/p>\n
The production sharing management director, he went on, would
\nassume the duties currently held by the head of Pertamina's
\nProduction Sharing Management and Development Body (BPPKA).<\/p>\n
Based on the new oil and gas bill, BPPKA's functions will no
\nlonger be controlled by Pertamina and the government plans to
\nhave a separate body handling production sharing partners.<\/p>\n
Baihaki said that under the new oil and gas law, Pertamina can
\neliminate the production sharing management director from its
\norganization.<\/p>\n
He added that the restructuring was part of preparations to
\ntransform Pertamina into a limited liability company.<\/p>\n
New at Pertamina, he said, would be the development director,
\nwith responsibility for, among other things, the development of
\nhuman resources, information technology, strategic planning,
\nenvironmental issues and business development.<\/p>\n
He said that development of these specialties had been one of
\nPertamina's main weaknesses.<\/p>\n
Baihaki informed that a fit and proper test would determine
\nthe selection of the company's new board of directors.<\/p>\n
\"We will try to have half of the board replaced with a younger
\ngeneration ... new faces,\" he said .<\/p>\n
However, the appointment of new directors requires another
\npresidential decree, which he expects to be issued in January.<\/p>\n
\"We want the best, so let this new structure and the new faces
\naccomplish what we have been aiming for,\" Baihaki added.<\/p>\n
He said a team was reviewing various ways to reduce the
\ncompany's workforce, but the reduction would rely mainly on
\nnatural retirement and requests for early retirement.<\/p>\n
\"But there is no hurry, because every year between 800 to
\n1,000 employees resign naturally,\" he added.<\/p>\n
Baihaki cautioned that present economic hardships made an
\nimmediate workforce reduction inappropriate.<\/p>\n
He said he would try to transfer some of the company's
\nemployees to subsidiaries, other companies or different
\npositions.<\/p>\n
Baihaki said that Pertamina would ask that its assets,
\ncurrently held by the government, be returned for the transition
\nto a limited liability company.<\/p>\n
He said that Pertamina might appoint an independent auditor to
\nevaluate the company's assets held by the government.<\/p>\n
\"We do not know the exact worth of these assets, but according
\nto calculations of BPKP (The State Audit Board), the assets are
\nnow worth some Rp 8 trillion (US$842.1 million) to Rp 10
\ntrillion,\" he explained. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-approves-pertaminas-restructuring-plan-1447893297",
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