Pertamina pledges to root out corrupt, collusive practices<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina pledged
\nyesterday to rid its business operations of cronyism, collusion
\nand nepotism.<\/p>\n
Pertamina president Soegianto said yesterday the company was
\ncurrently collecting information about all the companies which
\nhad obtained contracts from Pertamina thanks to connections with
\nformer president Soeharto.<\/p>\n
He said the measure was being taken on the instructions of
\nMinister of Mines and Energy Kuntoro Mangkusubroto's, who asked
\nPertamina to review all of its contracts with shipping and
\ntrading companies in an effort to free the company of corruption
\nand collusion.<\/p>\n
Soeharto's children and cronies enjoyed exclusive rights over
\na number of business activities associated with Pertamina,
\nincluding the import and shipping of fuel and crude oil.<\/p>\n
Soegianto said companies involved would be reported to the
\ngovernment, which would later decide if the people involved
\nshould be banned from doing further business with Pertamina.<\/p>\n
\"If they want to continue business with Pertamina, they should
\nfollow fair and sound practices. But I doubt if they will want to
\ncontinue,\" Soegianto said at a one-day seminar on oil and
\nelectricity organized by the Management Students' Society from
\nUniversity of Indonesia's faculty of economics.<\/p>\n
Under Soeharto's government, Pertamina were for decades
\nobliged to buy imported fuel and crude oil from Perta Oil
\nMarketing Ltd and Permindo Trading Oil Co Ltd.<\/p>\n
Pertamina has a 30 percent stake in Penta, while the remaining
\n70 percent is owned by Soeharto's youngest son Hutomo Mandala
\nPutra, alias Tommy.<\/p>\n
Pertamina also holds a 35 percent stake in Permindo, however
\nthe remaining 65 percent is owned by Bambang Trihatmodjo,
\nSoeharto's second son; Sudwikatmono, Soeharto's cousin; Nirwan
\nBakrie; and Roosano Barack.<\/p>\n
Tommy also ships fuel, LNG, and crude oil for Pertamina
\nthrough his publicly listed company Humpuss Intermoda
\nTransportasi.<\/p>\n
The company said in its 1997 annual report that Pertamina
\nchartered nine tankers from the company to transport crude oil,
\nand a further three tankers to ship liquefied natural gas (LNG)
\nto export markets. The charter period for the tankers ranged from
\nten to 12 years.<\/p>\n
Informed sources at Pertamina said that Bambang had also been
\ngranted the exclusive right to arrange financing for the
\ndevelopment of all LNG plants in the country.<\/p>\n
Soegianto said the elimination of collusion, cronyism and
\nnepotism would improve Pertamina's efficiency.<\/p>\n
He also said Pertamina would close its marketing offices in
\nLondon, Singapore, and Houston later this year to further improve
\nefficiency, but its marketing office in Tokyo would remain open
\nbecause Japan was the largest market for Indonesian crude oil.<\/p>\n
Soegianto acknowledged that Pertamina had given the five
\nministers from the 1993\/1998 cabinet who served as company
\ncommissioners -- the Minister of Mines and Energy, the State
\nMinister for National Development Planning, the State Minister
\nfor Research and Technology, the Minister of Finance, and the
\nMinister\/State Secretary -- Rp 1 billion (US$100,000) each for
\nundertaking Pertamina-related activities.<\/p>\n
\"Let the commissioners judge if these payments are still
\nnecessary,\" Soegianto said.<\/p>\n
Paiton<\/p>\n
In a related development, East Java provincial authorities
\nannounced yesterday that they would review all projects in the
\nprovince which involved Soeharto's children.<\/p>\n
\"We shall have to judge if they are still capable of carrying
\nout these projects. Otherwise, we shall give the projects to
\nother investors,\" East Java governor Basofi Sudirman was quoted
\nby Antara as having said.<\/p>\n
\"Anyhow, which investors are capable of seeing through big
\nprojects during the current difficult situation?\" Basofi asked.<\/p>\n
Soeharto's family are involved in projects worth billions of
\ndollars in the province. Bambang and Soeharto's brother
\nProbosutedjo own refinery projects in Situbondo and Probolinggo,
\nboth of which are in planning stages.<\/p>\n
Bambang and his partners are also developing a 1,220 Megawatt
\n(MW) coal-fired power plant in Paiton, and a toll road linking
\nthe Waru-Wonokromo-Juanda areas in East Surabaya. He is also
\ndeveloping a gas pipeline network from Pagerungan island in
\nMadura to Surabaya and Sidoarjo.<\/p>\n
Soeharto's daughter Siti Hardiyanti Rukmana, also known as
\nTutut, is behind the planned toll road linking the Waru-Juanda-
\nPerak areas in East Surabaya, while the former presidents
\nyoungest son Tommy owns the Umbulan drinking water project. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-pledges-to-root-out-corrupt-collusive-practices-1447893297",
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