Pertamina chief vows to step up graft probe
Pertamina chief vows to step up graft probe
JAKARTA (JP): The new president of state oil and gas company
Pertamina, seeking to quiet public distrust about his commitment
to fighting graft, has ordered an investigation into all the
firm's contracts worth more than Rp 10 billion (US$1.17 million).
Martiono Hadianto said on Tuesday he instructed his staff to
determine whether the contracts were awarded in compliance with
proper procedures and if fees charged by contract holders to
Pertamina were "reasonable"
"Proper procedure is not enough. All the contracts should also
quote reasonable prices," Martiono said in his first news
conference since his installment early last month.
He did not divulge what actions would be taken for contracts
failing to meet requirements.
Martiono, a former assistant to President B.J Habibie,
replaced Soegianto.
His installment raised speculation he was assigned to shield
top Habibie administration officials from his predecessor's
aggressive campaign to stamp out corruption, collusion and
nepotism, known locally by the acronym KKN.
Many government officials are suspected of indulging in
rampant KKN practices during Soeharto's New Order regime.
Acknowledging public doubts about his commitment to fighting
graft, Martiono declared he was determined to root out KKN.
Soegianto announced last year that Pertamina awarded 159
contracts to Soeharto's family and cronies during his rule.
Soegianto annulled, retendered or renegotiated most of the
contracts.
Martiono said Habibie had instructed him to transform
Pertamina into a world-class company.
He pledged to continue the corporate restructuring program
initiated by his predecessors to make all the business units of
Pertamina independent and profitable.
He said he launched a program to create a better corporate
image for Pertamina and to make it a transparent and profit-
oriented company.
He called on the government to allow Pertamina to develop the
Coastal Plains Pekanbaru (CPP) block in Riau after the contract
of oil company PT Caltex Pacific Indonesia expires in 2001.
By transferring the development of the block to Pertamina, he
said, the government would help strengthen Pertamina's bid to be
a world-class firm.
"Give Pertamina a chance to show its ability. If Pertamina
does not perform well...," Martiono said.
An interministerial task force has recommended the government
allow Caltex and Pertamina to jointly develop the block as a
solution to the dispute between both companies over the right to
develop the block by itself.
It has also recommended the government to increase its share
in the block's oil wells -- which are developed with primary
technology and secondary enhanced oil recovery technology -- from
its present 85 percent.
House of Representatives' Commission V for mines and energy,
industry and trade has demanded a say in selecting the developer
of the block.
Pertamina will be able to increase its oil output to about
140,000 barrels per day if it is allowed to develop the CPP block
which currently produces 77,000 barrels per day (bpd), he said.
Martiono said Pertamina improved its efficiency over the past
several years and it would continue the efficiency program.
He promised not to lay off any of company's 28,800 workers
given the economic suffering already affecting the majority of
the people. (jsk)