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