Govt rejects Pertamina image-polishing plan

Govt rejects Pertamina image-polishing plan

The government has rejected a proposal by state oil and gas firm
PT Pertamina to spend a large amount of money for changing its
antiquated logo, as it was deemed unnecessary amid the firm's
financial woes.

State Minister for State Enterprises Sugiharto, who oversees
state-owned companies, said his office had rejected the logo-
changing plan, calling it a reflection of a lack of sense of
crisis on the part of the company's management.

"We have rejected their plan because it is not considered
necessary especially when the company is currently having
difficulties with its cash flow.

"Their plan does not make sense," said Sugiharto at the
Ministry of Finance on Tuesday.

According to sources at the Office of the State Ministry of
State Enterprises, Pertamina had submitted a proposal to change
its old logo -- a star flanked by two seahorses -- at a cost of
some Rp 100 billion (US$11 million).

The plan, which was also ruled out by Pertamina president
director Widya Purnama, was aimed at polishing up the company's
image, long known as one of the most corrupt of state-owned
companies, and to help it revitalize its performance.

Pertamina spokesman Muhammad Harun confirmed that there was
indeed a plan to change the company logo. However, it was still
being discussed internally and had not as yet been submitted to
the government for approval.

"The plan is still in its early stages because it will need a
lot of funds to realize it. You can just imagine how many gas
stations across the nation we will have to fund in order to
change their logos," said Harun. -- JP