BUMN must benefit the public
BUMN must benefit the public
The management of every company, including state-owned
enterprises (BUMN), is obliged to endeavor to achieve its target
and thereby obtain a favorable appraisal of its performance.
Nevertheless, all BUMNs must accord the national interest top
priority.
The success of a BUMN should not be detrimental to society
otherwise such success will be deemed a major failure of the
management concerned in operating the company to the benefit of
the public.
A reduction in the quantity of natural gas supplied to the PT
Pupuk Kaltim plant at Bontang by Pertamina could result in damage
to the national economy because the unavailability or shortage of
urea fertilizer might cause a decline in the rate of rice
production and hence farmers' welfare.
Fundamentally it would be an avoidable occurrence if either
Pertamina or PT Pupuk Kaltim could agree on a reasonable price
formula for natural gas based on a mutual understanding that both
were established to serve the public to the best of their
ability.
Even though Pertamina strongly denied the allegation that such
reduction is attributable to the inability, hitherto, to reach an
agreement, it is very hard to envisage a resolution in the short
term, given that the price in the export market is higher than it
is in the domestic market. That is the crux of the issue.
The government has many options to overcome the prolonged
crisis, one of which is to issue a government regulation
regarding the transfer of a certain percentage of PT Pupuk Kaltim
shares by PT Pusri to Pertamina and a formula for a fair price
for natural gas delivered to the PT Pupuk Kaltim plant. In such a
way a workable business relationship between the two strategic
enterprises would be maintainable, which could enable PT Pupuk
Kaltim to achieve its optimal target.
The construction project for the East Kalimantan fertilizer
plant was drawn up by Pertamina but in 1977, based on a
government regulation, it was switched to the industry ministry
and at present PT Pupuk Kaltim is a subsidiary company of PT
Pusri.
The public, especially farmers, are waiting for a reliable
stock of urea fertilizer at a guaranteed moderate price. We wish
the government would take a firm decision immediately to end the
current crisis.
HASAN BASRI MUCHTAR, Jakarta