Pertamina drops refinery deal with PT Humpuss<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina has dropped
\na plan to cooperate with PT Humpuss, owned by two of former
\npresident Soeharto's sons, to jointly operate its petrochemical
\nrefinery in South Sumatra.<\/p>\n
Speaking at a hearing yesterday at the House of
\nRepresentatives, Pertamina president Soegianto said the joint
\noperation plan had been dropped to safeguard the state oil and
\ngas company's interests.<\/p>\n
\"Pertamina is now preparing steps to retender the project
\neither to domestic or international investors,\" Soegianto told
\nCommission V for Mines and Energy, Industry and Trade, Manpower,
\nInvestment, and Environment.<\/p>\n
Company processing director Samto Utomo said Pertamina had
\nreached an initial agreement with Humpuss to jointly operate its
\npurified terepthalic acid (PTA) refinery in Plaju, South Sumatra.
\nHumpuss, under the initial agreement, is required to boost the
\nprocessing capacity to 225,000 tons from 165,000 tons per annum.<\/p>\n
Humpuss is owned by Soeharto's sons Hutomo Mandala Putra alias
\nTommy and Sigit Harjojudanto.<\/p>\n
Samto said Humpuss was willing to invest US$24 million in the
\nproject but negotiations had not yet been completed because
\nPertamina considered Humpuss was demanding \"too high a stake\" in
\nthe refinery in return for the investment.<\/p>\n
He said Pertamina had asked Humpuss to lower its demands and
\nhad given the company until June 30 to make a decision.<\/p>\n
Humpuss requested a two-month extension but Pertamina decided
\nto drop the joint cooperation plan.<\/p>\n
\"Now, at least three international and local companies have
\napplied to take part in the tender for the project,\" Samto said.<\/p>\n
Soegianto also said Pertamina was considering ending its
\ninsurance brokering contract with PT Tugu Reinsurance Broker,
\nwhich is controlled close business associates of Seoharto.<\/p>\n
\"We will find a broker company offering lower premiums,\" he
\nsaid, adding that Pertamina currently pays a premium of $25
\nmillion to the company.<\/p>\n
Pertamina is currently insured by PT Tugu Pratama Indonesia
\nwhich is 45 percent owned by Pertamina, 20 percent by Pertamina's
\npension fund and 35 percent owned by PT Nusantara Ampera Bakti
\n(Nusamba), while Tugu Reinsurance acts as its broker.<\/p>\n
Nusamba is owned by Suharto's close business associate Mohamad
\n\"Bob\" Hasan, Soeharto-led foundations, and by his eldest son
\nSigit Harjojudanto.<\/p>\n
Tugu Reinsurance is 55 percent owned by Nusamba, 25 percent by
\nTugu Pratama and 20 percent by Penjuru Ltd.<\/p>\n
Soegianto was criticized yesterday for refusing to name the
\nowner of Penjuru, one of the shareholders of Tugu Reinsurance.<\/p>\n
\"There is nothing to hide in this reformation era. Why don't
\nyou just honestly say to us that the company is owned by the son
\nof the former Pertamina president (Faisal Abda'oe),\" said
\nlegislator Djusril Djusan of the ruling Golkar faction.<\/p>\n
Faisal, who headed Pertamina for 10 years until last year, is
\nknown to be a close associate of Seoharto.<\/p>\n
Pertamina has long been considered the country's worst symbol
\nof nepotism due to the deep involvement of Soeharto's family and
\ncronies in its operations.<\/p>\n
The company has pledged to improve its efficiency by rooting
\nout corruption, collusion and nepotism in its operations in the
\nwake of Soeharto's downfall in May. The company has awarded
\ncontracts to between 120 and 150 companies linked to Soeharto's
\nfamily and cronies.<\/p>\n
Pertamina is reviewing the contracts and has retendered some
\nof them on the orders of Minister of Mines and Energy Kuntoro
\nMangkusubroto.<\/p>\n
Under the third revision of the International Monetary Fund-
\nsponsored reform program released last week, the government
\nagreed to conduct an international audit of Pertamina and other
\nstate entities.<\/p>\n
Soegianto said yesterday Pertamina did not have any
\nreservations with any international audit but noted the plan was
\nin conflict with the Pertamina law which stated that only the
\nSupreme Audit Body has the right to audit the company. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-drops-refinery-deal-with-pt-humpuss-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}