Finance minister admits being on Pertamina payroll

The Jakarta Post, Jakarta

Minister of Finance Boediono on Monday confirmed reports he is an advisor to the board of commissioners of state oil and gas firm PT Pertamina.

But he denied getting a handsome monthly salary of about Rp 75 million (around US$8,000) for the job.

"I receive a salary much lower than that (Rp 75 million). I won't say the figure, just check with Pertamina," Boediono said.

Boediono said he advised Pertamina about the government policy on fuel subsidies, the prospects for the oil industry and about the current transition of Pertamina into a limited liability company.

Boediono, long regarded as a modest and hardworking bureaucrat, came under the spotlight after Pertamina was criticized about the controversial sale of two giant oil tankers. Some critics said the sale of the assets had not been conducted properly as Pertamina management had not consulted with Boediono.

According to reports, Minister of Energy and Mineral Resources Purnomo Yusgiantoro also acted as an advisor to Pertamina.

In documents received by The Jakarta Post signed by Pertamina's chief commissioner, Laksamana Sukardi, who is also State Minister of State Enterprises, Boediono provides Pertamina's board of commissioners with advice about fuel subsidies and business development.

Purnomo, meanwhile was a consultant regarding market development, crude oil prices, the provision of fuel products for domestic consumption and government subsidies.

For their work, the ministers receive a salary equal to that received by the chief commissioner. Trust magazine reported the chief commissioner of Pertamina receives about Rp 75 million a month.

Pertamina allegedly pays this handsome salary despite claims it has been suffering cash flow problems. Other reports say the commissioners recently approved a rise in the salaries of the company's board of directors and commissioners.

Pertamina finance director Alfred Rohimone said the company's cash flows had dropped to critical level of below Rp 2 trillion. The company must have sufficient funds to import crude oil and oil-based products to maintain a safe level of national stocks.

Pertamina said its dire financial situation had prompted the sale of two giant tankers, which are currently being built by South Korea's Hyundai Heavy Industries.

Meanwhile, economist Revrisond Baswir of Gadjah Mada University said the appointment of ministers as advisors to Pertamina violated the State Enterprise Law.

"According to the law, there are no (regulations creating the) positions of advisors to state enterprises. The (positions) are fabricated," he said as quoted by Detikcom.