ARII has 12 months to find new president

ARII has 12 months to find new president

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana has given Atlantic Richfield Indonesia Inc. (ARII) one year to find an Indonesian citizen to replace its new president, who is a foreign national.

"Otherwise, we will take over its management," Minister Sudjana told journalists before attending a limited cabinet meeting on the economy yesterday.

He said that the government would ask the state oil company Pertamina to take over ARII's management if the latter failed to find an Indonesian chief executive.

ARII, a subsidiary of Arco Corporation of the United States, is a production-sharing contractor of Pertamina.

ARII yesterday installed Leon Codron, Arco's vice president for international marketing affairs, as its new president. Codron replaces T.N. Machmud, who is entering retirement.

ARII has been criticized by both its own staff and government officials for its failure to promote an Indonesian executive to replace Machmud, who led the company for 11 years.

"I don't think it is the case that there is no Indonesian capable of handling the company. We can handle big oil enterprises like Pertamina, far bigger than ARII," Sudjana said.

The government has given ARII concessions offshore West Java; in Babo and Waringin, both in Irian Jaya; and in Kolasi off Sulawesi.

"Other (oil) companies have placed Indonesian executives in their top positions. Why hasn't Arco prepared (an Indonesian) for the job? There must be something wrong with its management," Sudjana said yesterday.(rid)