Pertamina CEO to be replaced: Report<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The government will replace Pertamina president Baihaki Hakim
\nwith Gatot Karyoso Wirayuda, a former upstream director at the
\ncompany, according to a report.<\/p>\n
Rumors that Baihaki will be replaced have been swirling over
\nthe past year, since the former president of PT Caltex Pacific
\nIndonesia undertook a major reform program to boost efficiency
\nand turn the state-owned oil and gas firm into a world-class
\ncompany.<\/p>\n
Pertamina has been treated as cash cow by politicians and
\ninfluential businessmen for much of its history.<\/p>\n
"We have not been informed yet about any decision," Pertamina
\nspokesman Ridwan Nyak Baik told The Jakarta Post on Monday when
\nasked about Baihaki'r replacement.<\/p>\n
But the Kontan economic weekly reported in its latest edition
\nthat the decision was taken during a meeting between President
\nMegawati Soekarnoputri and Pertamina's board of commissioners,
\nwhich includes five ministers.<\/p>\n
The report did not say when the decision would become
\neffective.<\/p>\n
It is still unclear why Baihaki will be replaced. But
\naccording to one theory, businesspeople who stand to lose
\nprofitable rent-seeking businesses in the reform drive launched
\nby Baihaki have been lobbying for the change.<\/p>\n
Another possibility is that Megawati simply is not comfortable
\nwith Baihaki, who was appointed in 2000 by then president
\nAbdurrahman Wahid.<\/p>\n
Kontan reported that State Minister for National Development
\nPlanning Kwik Kian Gie was the only member of Pertamina's board
\nof commissioners who wanted Baihaki to maintain his job.<\/p>\n
But, according to the magazine, Kwik backed down and
\nacknowledged that reshuffling Pertamina's top official was the
\nprerogative of the President.<\/p>\n
The magazine reported that there were three candidates to
\nreplace Baihaki at Pertamina. Aside from Gatot, there was Iin
\nArifin Takyan, the current upstream director at Pertamina, and
\nRoes Aryawijaya, a deputy at the Office of State Minister for
\nState Enterprises.<\/p>\n
Iin was backed by Minister of Energy and Mineral Resources
\nPurnomo Yusgiantoro, while Roes was backed by State Minister for
\nState Enterprises Laksamana Sukardi. But in the end Megawati
\nreportedly felt more comfortable with Gatot.<\/p>\n
The big question is, if and when Gatot assumes the top post at
\nPertamina, will he continue the reform drive began by Baihaki.<\/p>\n
Oil brokers who supply Pertamina with its international crude
\nneeds may have been unhappy with Baihaki's plans to lessen the
\nrole of the traders by moving Pertamina to purchase the crude
\ndirectly from the spot market, which was one part of his
\nefficiency program.<\/p>\n
Meanwhile, a senior official at Pertamina who asked not to be
\nidentified expressed regret over the rumored replacement of
\nBaihaki.<\/p>\n
"Baihaki has brought positive changes to Pertamina. It will be
\na huge loss for Pertamina if he is finally replaced," the
\nofficial said.<\/p>\n
According to the official, Baihaki has made Pertamina more
\nefficient and more financially sound.<\/p>\n
Baihaki also has established good corporate governance in the
\ncompany, for example, ensuring every tender is carried out
\ntransparently and fairly, the official said.<\/p>\n
"If Baihaki is finally replaced, we are afraid that old
\npractices such as money transfers to powerful political parties
\nwill begin again," said another official.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-ceo-to-be-replaced-report-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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