Gus Dur wants new president for Pertamina

Gus Dur wants new president for Pertamina

JAKARTA (JP): President Abdurrahman Wahid wants to replace the
president of state oil and gas company Pertamina, Martiono
Hadianto, and is calling on his ministers to select the best
candidate to become the new leader of the largest and most
strategic state company.

"I ask the board of commissioners to find a new president and
new directors for Pertamina," Abdurrahman said on Thursday at the
Bina Graha presidential office during the ceremony to install new
commissioners at Pertamina.

Abdurrahman, popularly known as Gus Dur, said the new
president of Pertamina had to meet three requirements; he or she
should be honest, able to implement transparent management and be
capable to compete globally.

"Pertamina's president should have a clear concept and
strategy in facing the international cartels who are looking for
maximum profits," Gus Dur said.

The new members of Pertamina's board of commissioners include
president commissioner Susilo Bambang Yudhoyono, vice chief
commissioner Minister of Finance Bambang Sudibyo, and
commissioners Coordinating Minister for Economy, Finance and
Industry Kwik Kian Gie, Minister of Law and Legislation Yusril
Ihza Mahendra and head of the National Development Planning Board
(Bappenas) Djunaedi Hadisumarto.

In the past, the board included the minister/state secretary,
but excluded the minister in charge of legal affairs.

After the ceremony, Bambang told reporters no names had so far
been proposed for Pertamina's top job.

Thus, the board would select from all potential candidates,
including the names already mentioned on the rumor mill, Bambang
said.

Martiono, who was present at the ceremony, refused to comment
on Gus Dur's plan to remove him.

He noted, however, that whoever is the leader of Pertamina, he
or she should prepare the state company for the free market in
the region to be implemented by the Association of Southeast
Asian Nations (ASEAN) in 2003.

Several names have been tipped for Pertamina's top job,
including legislator Arifin Panigoro, who is also chairman of the
largest national private oil and gas company Medco Energy Corp.
and legislator Hatta Radjasa, who is also the owner of oil
drilling company Bormindo.

Arifin is a member of the Indonesian Democratic Party of
Struggle (PDI-Perjuangan), while Hatta is member of the National
Mandate Party (PAN).

Other names are president of state tin mining company PT Timah
Erry Riyana Hardjapamekas, former president of American oil and
gas company PT Caltex Pacific Indonesia Baihaki Hakim and
president of gas distribution company PT Perusahaan Gas Negara
(PGN) A. Qoyum Tjandranegara.

Rennier A. Latief, the president of the country's second
largest national oil and gas company, Kondur Petroleum, and an
anonymous Pertamina senior official told The Jakarta Post the
government should give Martiono a chance to continue leading
Pertamina in anticipation of the free market era.

Both of them, however, supported Gus Dur's intention to
replace all the directors of the state company, whose
performance, they said, had been poor.

Rennier said Pertamina should retain Martiono because he had
learned much about Pertamina's business for more than one year
and had, thus far, successfully reformed the company in several
aspects.

He said a new leader of Pertamina had to spend between one and
two years learning about Pertamina's business before he or she
could take full command of the company. This would make Pertamina
less prepared for the competition in the free market era.

"In terms of capability, Martiono is still better than the
other names mentioned by the public," Rennier said.

He also warned the government not to allow certain political
parties to control Pertamina.

He said the public would not accept people like Arifin and
Hatta leading Pertamina in fear that Pertamina would fall under
the control of certain political parties.

"What has caused rampant corruption in Pertamina is the
excessive interference of the government in the company. What
Pertamina needs to become a world-class company is a business
environment that is free from interference, a clear policy from
the government and a clear punishment-and-reward system," he
said. (jsk/prb)