Pertamina salary not Rp 75m, says minister

The Jakarta Post, Jakarta

The Minister of Energy and Mineral Resources Purnomo Yusgiantoro denied reports on Tuesday that he receives a monthly salary of Rp 75 million as an advisor to the board of commissioners of state oil and gas firm PT Pertamina.

"The secretary's office of Pertamina's board of commissioners gives (me) a monthly salary of Rp 21.8 million before taxes are taken," Purnomo said in a statement.

Purnomo said he had been on the Governing Board of Commissioners for Pertamina (DKPP) as chief commissioner prior the introduction of Law No. 22/2001 on oil and gas, which changed the company into a limited liability company.

After the introduction of the law, Purnomo was no longer the chief commissioner, but has been appointed as an advisor to the board of commissioners along with Minister of Finance Boediono.

Purnomo is tasked with giving input on market developments, crude oil prices, provision of fuel products for domestic consumption and government subsidies, while Boediono gives input on fuel subsidies and business development, according to documents signed by Pertamina's chief comissioner and State Minister of State Enterprises Laskamana Sukardi, obtained by The Jakarta Post.

Purnomo is currently the president of Organization of Petroleum Exporting Countries (OPEC).

Trust magazine has reported that each of the ministers receives Rp 75 million in monthly salary.

Boediono has also denied the report, saying his salary as an advisor was "less than Rp 75 million", without specifying.

The salary issue comes amid controversies over Pertamina's decision to sell its two tankers now being built by South Korean firm's Hyundai Heavy Industries. Pertamina cited cash flow problems, as the reason behind the sale.