Pertamina's new executives installed<\/p>\n
JAKARTA (JP): The government installed the new board of
\ndirectors of the state oil and gas company Pertamina on
\nWednesday, as part of a restructuring program for the country's
\nlargest state company being conducted in anticipation of the free
\nmarket era.<\/p>\n
The government reduced Pertamina's board of directorates from
\nseven to six under the presidential decree No. 313\/200, which was
\nsigned on Nov. 11, 2000 but only revealed to the public on
\nWednesday.<\/p>\n
Newcomers to the board are Effendi Situmorang, who was
\nappointed to head the directorate of development, and Iin Arifin
\nTakhyan to head the directorate for the management of production
\nsharing contractors. Both are new directorates within Pertamina.<\/p>\n
Formerly, the management of production sharing contractors was
\nheld by a special agency under Pertamina, called the foreign
\ncontractors management body (BPPKA).<\/p>\n
Iin was an expert member of staff for the Minister of Mines
\nand Energy before taking over the new position.<\/p>\n
Effendi was the vice president of American oil and gas company
\nUnocal Indonesia Company until his appointment at Pertamina.<\/p>\n
Effendi was one of several workers for foreign investors
\nallowed to take a top position in the state company, which has
\npreviously been controlled by government and military officials.<\/p>\n
Baihaki Hakim, former president of American oil and gas
\ncompany PT Caltex Pacific Indonesia, who was appointed as
\nPertamina's president early last year, retained his position at
\nthe helm of the company.<\/p>\n
Also retaining their post was finance director Ainun Naim,
\nwhile Gatot K. Wiroyudo and Ariffi Nawawi were appointed to new
\npositions as Pertamina's upstream and downstream directors
\nrespectively.<\/p>\n
Previously, Gatot was Pertamina's director for exploration and
\nproduction, while Ariffi was processing director.<\/p>\n
The government dismissed the director for general affairs,
\nSjahrial Daud; director for fuel logistics and distribution,
\nHarry Poernomo; and the director for shipping, port and
\ncommunication affairs, Ilham Sjarif.<\/p>\n
Their directorates have been merged into the directorates of
\ndownstream, and development.<\/p>\n
\"One month after you start working, the board of commissioners
\n(of Pertamina) will demand that the new directors explain their
\nfuture programs, actions and operational strategies,\" Minister
\nfor Energy and Mineral Resources Purnomo Yusgiantoro said during
\nthe inauguration ceremony.<\/p>\n
Purnomo was referring to Pertamina's board of commissioners,
\nof which he is a member along with three other ministers and the
\nhead of the National Development Agency (Bappenas).<\/p>\n
\"I want Pertamina in the future to become an organization
\nwhose principal activities are the decentralization and
\nclassification of core businesses,\" Purnomo continued.<\/p>\n
He said that Pertamina's core business would be divided into
\nthe upstream sector, which comprises exploration and production
\nactivities, and the downstream sector which consists of
\ndistribution and trading activities.<\/p>\n
Ultimately, he said, Pertamina would become a limited
\nliability holding company.<\/p>\n
\"Pertamina must improve or cut out inefficient business units
\nand press production costs, so that its trademark will be
\ncheaper, quicker and better,\" Purnomo continued.<\/p>\n
\"The results should be measurable and entirely transparent,\"
\nhe added.<\/p>\n
The government last year submitted to the House of
\nRepresentatives a new oil and gas bill which, if enacted, would
\nreplace Law No. 8\/1971 on Pertamina and Law No 44\/1960 on the oil
\nand gas industry.<\/p>\n
The bill dismantles Pertamina's present dual-role as a
\nregulator and an operator in the oil and gas industry, instead
\nturning it into a limited liability company.<\/p>\n
Baihaki has said he anticipated the bill, and explained that
\nif it became effective Pertamina would simply relinquish its
\ndirectorate for the management of production sharing partners.
\n(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertaminas-new-executives-installed-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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