Govt may replace Pertamina management

Govt may replace Pertamina management

The government is considering axing the board of directors and
commissioners of state-owned oil and gas company PT Pertamina
over the controversial sale of its two supertankers that resulted
in a negative image for the company, a minister said on Monday.

State Minister of State Enterprises Laksamana Sukardi said
that the government was currently evaluating Pertamina's board of
directors and commissioners, and the result would be discussed in
the next extraordinary shareholders' meeting.

"Changing the composition of the directors is a common measure
during a transition period. If we consider them ineffective, we
will fire them. We'll look into it," said Laksamana after a
meeting with the Indonesian Chamber of Commerce and Trade
(Kadin).

Laksamana, who is also Pertamina's chief commissioner, refused
to disclose the new management composition or the date of the
shareholders' meeting, pending the results of the evaluation by
his office.

He explained that the evaluation followed Pertamina's recent
controversial sale of its supertankers, and other complicated
problems such as the oil subsidy, restructuring efforts and the
lack of transparency.

Earlier this month, Pertamina sold its two tankers, known in
the industry as Very Large Crude Carries (VLCC) for US$184
million to Norway-based Frontline Ltd. But the sale has not been
without controversy.

While the company's management insists that selling the
tankers was better for Pertamina, which is in dire need of cash,
some observers and Pertamina's workers union believe otherwise.
-- JP