Govt defends appointment of Pertamina board
Fitri Wulandari, The Jakarta Post, Jakarta
The government is defending its decision to reshuffle the board of management of state oil and gas company Pertamina, saying the new board is considered the best choice to lead the firm after it has become a limited liability company.
Roes Aryawidjaya, deputy to the state minister of state enterprises said all the new Pertamina directors had been subject to tests of their suitability, carried out by an independent team of experts.
"The appointed new directors are the best choice. The tests were carried out by an independent consultant, with particular stress on their integrity," Roes said on Thursday after overseeing an induction ceremony for Pertamina directors.
He also brushed aside statements that the major reshuffle had been too hasty, saying it had been carefully prepared for.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro was of the same voice, saying the reshuffle came as a result of "a normal process."
"The process is in line with the company's restructuring program," Purnomo said before a meeting with Commission VIII of the House of Representatives, which oversees energy affairs.
Purnomo added that new Pertamina president Ariffi was the best of all the candidates, achieving the highest score in the suitability test.
He also rejected statements that appointment of the new board of directors and commissioners aimed to serve the interests of certain political parties.
The government appointed Ariffi Nawawi on Wednesday as Pertamina president, to replace Baihaki Hakim, with State Minister of State Enterprises Laksamana Sukardi as chief commissioner.
The reshuffle in Pertamina followed the signing of an official decision by President Megawati Soekarnoputri and several ministers, which turned the state enterprise into a limited liability company. Previously, the company was a semi-profit- making firm.
The appointment stirred concern because Ariffi, who was previously a former Pertamina director, had once featured in a graft case involving Pertamina.
Ariffi's name reportedly came up in a case related to procurement of additives for the Balongan refinery, Indramayu, West Java.
It raises concern among some that the firm may again become one of the country's largest dens of corruption, for which it gained a reputation in the past.
Ariffi rebuffed the report and said he was only involved as a witness in the matter.
"The case is still at court; anybody can be summoned as a witness. If we are called by the state to testify in court, we are obliged to say whether something is true or not," he stressed.
Regarding the graft case, Ariffi said it concerned an allegation by the Attorney General's Office and needed to be proven.
"The office must prove it (the allegation) ... ," he said.
Ariffi vowed to prevent corruption from thriving in the company.
"We are going to run the company transparently. You are welcome to audit or examine the company," Ariffi remarked.
Meanwhile, House Commission VIII member Djusril Djusan said the commission would summon the new board of directors and commissioners for them to provide a clarification on possible instances of corruption in the past, in which they may have been implicated.
Djusril said if the commission found they were involved in any past corruption, they would send a request to Megawati to replace them.
Meanwhile, Roes said as a limited liability company, Pertamina had a difficult job and would face tough future challenges.
"A limited liability company is different. Most importantly, Pertamina should be transparent and accountable. It will have to seek maximum profit at least possible cost," he said.
Roes added the new board of directors had to submit a financial and activities plan for approval by shareholders in December this year.